This post is the second of two focused on the Texas sales and use tax treatment of tax-exempt entities. The first, which can be found here, discussed the general categories and criteria applicable tax-exempt entities for...more
I’ve previously posted about various Texas sales and use tax rules – general rules, exceptions, and exemptions applied to both taxable services and tangible personal property. However for certain entities—specifically,...more
The fun continues with the 89th Regular Session of the Texas Legislature, with several new proposed House Bills that relate to the imposition of Texas taxes. Of the over 100 proposals put forth so far, we’re keeping a closer...more
3/17/2025
/ Local Taxes ,
New Legislation ,
Proposed Legislation ,
Sales & Use Tax ,
Sales Tax ,
State and Local Government ,
State Legislatures ,
State Taxes ,
Tax Credits ,
Tax Exemptions ,
Tax Reform
On January 14, 2025, the 89th Regular Session of the Texas Legislature began. In just under one month, various Texas representatives have made a number of proposals to amend the Texas Tax Code that could have a significant...more
I discussed Texas franchise tax nexus in a prior post, which can be found here. However, there is a different (albeit similar) set of rules for Texas sales and use tax nexus. As with Texas franchise tax nexus, a business...more
Among the multitude of “taxable services” listed in the Texas Tax Code are “information services.” Although the Texas Tax Code’s definition of information services is somewhat sparse, the Comptroller has expanded on this...more
We’ve previously discussed the general rule that Texas sales and use tax are imposed on sales of “tangible personal property” or “taxable services,” [1] and that the Texas Tax Code and Comptroller’s Rules set out exemptions...more
It is not uncommon for Texas taxpayers to engage in a transaction in which they do not collect or pay Texas sales tax, believing the transaction to be nontaxable, only to later find out they had a tax responsibility. Other...more
The Texas Tax Code provides that, as a general matter, Texas sales and use tax are imposed on sales of “tangible personal property” or “taxable services.” However, various exemptions apply to these items to provide relief to...more
Many businesses in Texas involve the performance of services that require the use of machinery and equipment. While these businesses may purchase the necessary equipment outright, others opt to rent equipment from...more
In Texas, sales of alcoholic beverages can give rise to two types of taxes: Mixed Beverage Gross Receipts Tax, and Mixed Beverage Sales Tax. There are several complexities in how these are computed and how they interact with...more
The Texas sales and use tax rules surrounding contractors and other construction-related work are incredibly complex. Additionally, the rules are structured to have broad application and thus impact many industries,...more
The function and utility of computers has changed and evolved at an exponential rate over the last several years, and will likely continue to do so, particularly as advancements like artificial intelligence become integrated...more
In certain circumstances, services performed on oil and gas wells or related equipment may be subject to Texas sales or use tax. The taxability of these services is fraught with complexity, but is discussed briefly below....more