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
In the first week of March 2025, two separate Texas tax cases were filed in Texas state district court. Each of these involves, among other claims, whether taxable security services should be rendered exempt when preempted...more
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 recently posted a blog about Texas sales tax nexus in which I laid out the basic rules for determining whether a taxpayer has nexus with the State of Texas (and thus has a permit, collection, and/or reporting requirement...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
Receiving an assessment from the Texas Comptroller can be overwhelming, and not just from a financial perspective. To a taxpayer with little to no experience in dealing with the Comptroller’s office, even knowing how to...more
One of the most important elements in determining your rights as a Texas taxpayer is the applicable statute of limitations. At the most basic level, the statute of limitations represents a time period during which the Texas...more
In my most recent blog post, I finished going through the process for computing a taxable entity’s Texas Franchise Tax responsibility. That post can be found here. However, at the end of that post, I noted that there were...more
I’ve posted two blogs that cover the first two steps in computing the Texas Franchise Tax – the computation of “taxable margin” and the computation of the appropriate “apportionment factor.” Those posts can be found here and...more
Step 1 – Taxable Margin Once you’ve determined that your business is subject to the Texas Franchise Tax, the next step will be to compute the amount of that tax. Easy, right?...more
As noted in a prior post, the Texas franchise tax is a tax imposed on any “taxable entity” that does business in Texas or that is chartered or organized in Texas. This begs the question – “Which entities are taxable, and...more
If you own a business in Texas, you’ve likely encountered (for better or worse) the Texas franchise tax. The franchise tax is a tax imposed on any “taxable entity” that does business in Texas or that is chartered or...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
Last week, I posted a brief summary of sales tax issues related to software and computer programs. However, as the characterization and taxability of “data processing” is such a complex and hotly contested area, I felt a...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