| collecting any additional local use taxes due. See subsection
(g) of this section. If the seller fails to collect the additional
local use taxes due, the purchaser is responsible for accruing such
taxes and remitting them directly to the comptroller. For example,
if an order is received in person at a place of business of the seller,
such that the sale is consummated at the location where the order
is received as provided under subsection (h)(3)(A) of this section,
and the local sales tax due on the sale does not meet the two percent
cap, additional local use taxes may be due based on the location to
which the order is shipped or delivered, subject to the provisions
in paragraph (1) of this subsection. Or, if a purchaser places an
order for a taxable item at a seller's place of business in Texas,
and the seller ships or delivers the item from an out-of-state location
to a location in this state as designated by the purchaser, local
sales tax is due based upon the location of the place of business
where the order is received. If the local sales tax due on the item
does not meet the two percent cap, use tax, subject to the provisions
in paragraph (1) of this subsection, is due based upon the location
where the items are shipped or delivered.
(j) Items purchased under a direct payment permit.
(1) When taxable items are purchased under a direct
payment permit, local use tax is due based upon the location where
the permit holder first stores the taxable items, except that if the
taxable items are not stored, then local use tax is due based upon
the location where the taxable items are first used or otherwise consumed
by the permit holder.
(2) If, in a local taxing jurisdiction, storage facilities
contain taxable items purchased under a direct payment exemption certificate
and at the time of storage it is not known whether the taxable items
will be used in Texas, then the taxpayer may elect to report the use
tax either when the taxable items are first stored in Texas or are
first removed from inventory for use in Texas, as long as use tax
is reported in a consistent manner. See also §3.288(i) of this
title (relating to Direct Payment Procedures and Qualifications) and §3.346(g)
of this title.
(3) If local use tax is paid on stored items that are
subsequently removed from Texas before they are used, the tax may
be recovered in accordance with the refund and credit provisions of §3.325
of this title (relating to Refunds and Payments Under Protest) and §3.338
of this title (relating to Multistate Tax Credits and Allowance of
Credit for Tax Paid to Suppliers).
(k) Special rules for certain taxable goods and services.
Sales of the following taxable goods and services are consummated
at, and local tax is due based upon, the location indicated in this
subsection.
(1) Amusement services. Local tax is due based upon
the location where the performance or event occurs. For more information
on amusement services, refer to §3.298 of this title (relating
to Amusement Services).
(2) Cable services. When a service provider uses a
cable system to provide cable television or bundled cable services
to customers, local tax is due as provided for in §3.313 of this
title. When a service provider uses a satellite system to provide
cable services to customers, no local tax is due on the service in
accordance with the Telecommunications Act of 1996, §602.
(3) Florists. Local sales tax is due on all taxable
items sold by a florist based upon the location where the order is
received, regardless of where or by whom delivery is made. Local use
tax is not due on deliveries of taxable items sold by florists. For
example, if the place of business of the florist where an order is
taken is not within the boundaries of any local taxing jurisdiction,
no local sales tax is due on the item and no local use tax is due
regardless of the location of delivery. If a Texas florist delivers
an order in a local taxing jurisdiction at the instruction of an unrelated
florist, and if the unrelated florist did not take the order within
the boundaries of a local taxing jurisdiction, local use tax is not
due on the delivery. For more information about florists' sales and
use tax obligations, refer to §3.307 of this title (relating
to Florists).
(4) Landline telecommunications services. Local taxes
due on landline telecommunications services are based upon the location
of the device from which the call or other transmission originates.
If the seller cannot determine where the call or transmission originates,
local taxes due are based on the address to which the service is billed.
For more information, refer to §3.344 of this title (relating
to Telecommunications Services).
(5) Mobile telecommunications services. Local taxes
due on mobile telecommunications services are based upon the location
of the customer's place of primary use as defined in §3.344(a)(8)
of this title, and local taxes are to be collected as indicated in §3.344(h)
of this title.
(6) Motor vehicle parking and storage. Local taxes
are due based on the location of the space or facility where the vehicle
is parked. For more information, refer to §3.315 of this title
(relating to Motor Vehicle Parking and Storage).
(7) Natural gas and electricity. Any local city and
special purpose taxes due are based upon the location where the natural
gas or electricity is delivered to the purchaser. As explained in
subsection (l)(1) of this section, residential use of natural gas
and electricity is exempt from all county sales and use taxes and
all transit authority sales and use taxes, most special purpose district
sales and use taxes, and many city sales and use taxes. A list of
the cities and special purpose districts that do impose, and those
that are eligible to impose, local sales and use tax on residential
use of natural gas and electricity is available on the comptroller's
website. For more information, also refer to §3.295 of this title
(relating to Natural Gas and Electricity).
(8) Nonresidential real property repair and remodeling
services. Local taxes are due on services to remodel, repair, or restore
nonresidential real property based on the location of the job site
where the remodeling, repair, or restoration is performed. See also
subsection (f)(2)(B) of this section and §3.357 of this title.
(9) Residential real property repair and remodeling
and new construction of a real property improvement performed under
a separated contract. When a contractor constructs a new improvement
to realty pursuant to a separated contract or improves residential
real property pursuant to a separated contract, the sale is consummated
at the job site at which the contractor incorporates taxable items
into the customer's real property. See also subsection (f)(2)(A) of
this section and §3.291 of this title.
(10) Waste collection services. Local taxes are due
on garbage or other solid waste collection or removal services based
on the location at which the waste is collected or from which the
waste is removed. For more information, refer to §3.356 of this
title (relating to Real Property Service).
(l) Special exemptions and provisions applicable to
individual jurisdictions.
(1) Residential use of natural gas and electricity.
(A) Mandatory exemptions from local sales and use tax.
Residential use of natural gas and electricity is exempt from most
local sales and use taxes. Counties, transit authorities, and most
special purpose districts are not authorized to impose sales and use
tax on the residential use of natural gas and electricity. Pursuant
to Tax Code, §321.105, any city that adopted a local sales and
use tax effective October 1, 1979, or later is prohibited from imposing
tax on the residential use of natural gas and electricity. See §3.295
of this title.
(B) Imposition of tax allowed in certain cities. Cities
that adopted local sales tax prior to October 1, 1979, may, in accordance
with the provisions in Tax Code, §321.105, choose to repeal the
exemption for residential use of natural gas and electricity. The
comptroller's website provides a list of cities that impose tax on
the residential use of natural gas and electricity, as well as a list
of those cities that do not currently impose the tax, but are eligible
to do so.
(C) Effective January 1, 2010, a fire control, prevention,
and emergency medical services district organized under Local Government
Code, Chapter 344 that imposes sales tax under Tax Code, §321.106,
or a crime control and prevention district organized under Local Government
Code, Chapter 363 that imposes sales tax under Tax Code, §321.108,
that is located in all or part of a municipality that imposes a tax
on the residential use of natural gas and electricity as provided
under Tax Code, §321.105 may impose tax on residential use of
natural gas and electricity at locations within the district. A list
of the special purpose districts that impose tax on residential use
of natural gas and electricity and those districts eligible to impose
the tax that do not currently do so is available on the comptroller's
website.
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