| (a) Definitions. The following words and terms, when
used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1) Cable system--The system through which a cable
service provider delivers cable television or bundled cable service,
as those terms are defined in §3.313 of this title (relating
to Cable Television Service and Bundled Cable Service).
(2) City--An incorporated city, municipality, town,
or village.
(3) City sales and use tax--The tax authorized under
Tax Code, §321.101(a), including the additional municipal sales
and use tax authorized under Tax Code, §321.101(b), the municipal
sales and use tax for street maintenance authorized under Tax Code, §327.003,
the Type A Development Corporation sales and use tax authorized under
Local Government Code, §504.251, the Type B Development Corporation
sales and use tax authorized under Local Government Code, §505.251,
a sports and community venue project sales and use tax adopted by
a city under Local Government Code, §334.081, and a municipal
development corporation sales and use tax adopted by a city under
Local Government Code, §379A.081. The term does not include the
fire control, prevention, and emergency medical services district
sales and use tax authorized under Tax Code, §321.106, or the
municipal crime control and prevention district sales and use tax
authorized under Tax Code, §321.108.
(4) Comptroller's website--The comptroller's website
concerning local taxes located at: https://comptroller.texas.gov/taxes/sales/.
(5) County sales and use tax--The tax authorized under
Tax Code, §323.101, including a sports and community venue project
sales and use tax adopted by a county under Local Government Code, §334.081.
The term does not include the county health services sales and use
tax authorized under Tax Code, §324.021, the county landfill
and criminal detention center sales and use tax authorized under Tax
Code, §325.021, or the crime control and prevention district
sales and use tax authorized under Tax Code, §323.105.
(6) Drop shipment--A transaction in which an order
is received by a seller at one location, but the item purchased is
shipped by the seller from another location, or is shipped by the
seller's third-party supplier, directly to a location designated by
the purchaser.
(7) Engaged in business--This term has the meaning
given in §3.286 of this title (relating to Seller's and Purchaser's
Responsibilities).
(8) Extraterritorial jurisdiction-An unincorporated
area that is contiguous to the corporate boundaries of a city as defined
in Local Government Code, §42.021.
(9) Fulfill--To complete an order by transferring possession
of a taxable item to a purchaser, or to ship or deliver a taxable
item to a location designated by the purchaser. The term does not
include receiving or tracking an order, determining shipping costs,
managing inventory, or other activities that do not involve the transfer,
shipment, or delivery of a taxable item to the purchaser or a location
designated by the purchaser.
(10) Independently owned and operated business--A self-controlling
entity that is not a subsidiary of another entity or otherwise subject
to control by another entity, and that is not publicly traded.
(11) Itinerant vendor--A seller who travels to various
locations for the purpose of receiving orders and making sales of
taxable items and who has no place of business in this state. A person
who sells items through vending machines is also an itinerant vendor.
A salesperson that operates out of a place of business in this state
is not an itinerant vendor.
(12) Kiosk--A small stand-alone area or structure:
(A) that is used solely to display merchandise or to
submit orders for taxable items from a data entry device, or both;
(B) that is located entirely within a location that
is a place of business of another seller, such as a department store
or shopping mall; and
(C) at which taxable items are not available for immediate
delivery to a purchaser.
(13) Local taxes--Sales and use taxes imposed by any
local taxing jurisdiction.
(14) Local taxing jurisdiction--Any of the following:
(A) a city that imposes sales and use tax as provided
under paragraph (3) of this subsection;
(B) a county that imposes sales and use tax as provided
under paragraph (5) of this subsection;
(C) a special purpose district created under the Special
District Local Laws Code or other provisions of Texas law that is
authorized to impose sales and use tax by the Tax Code or other provisions
of Texas law and as governed by the provisions of Tax Code, Chapters
321 or 323 and other provisions of Texas law; or
(D) a transit authority that imposes sales and use
tax as authorized by Transportation Code, Chapters, 451, 452, 453,
457, or 460 and governed by the provisions of Tax Code, Chapter, 322.
(15) Marketplace provider--This term has the meaning
given in §3.286 of this title.
(16) Micro-business--A legal entity, including a corporation,
partnership, or sole proprietorship, that:
(A) is formed for the purpose of making a profit;
(B) is independently owned and operated; and
(C) has not more than 20 employees.
(17) Order placed in person--An order placed by a purchaser
with the seller while physically present at the seller's place of
business regardless of how the seller subsequently enters the order.
(18) Place of business of the seller - general definition--A
place of business of the seller must be an established outlet, office,
or location operated by a seller for the purpose of receiving orders
for taxable items from persons other than employees, independent contractors,
and natural persons affiliated with the seller. An "established outlet,
office, or location" usually requires staffing by one or more sales
personnel. The term does not include a computer server, Internet protocol
address, domain name, website, or software application. The "purpose"
element of the definition may be established by proof that the sales
personnel of the seller receive three or more orders for taxable items
at the facility during the calendar year. Additional criteria for
determining when a location is a place of business of the seller are
provided in subsection (b) of this section for distribution centers,
manufacturing plants, storage yards, warehouses and similar facilities;
kiosks; and purchasing offices. An outlet, office, facility, or any
location that contracts with a retail or commercial business to process
for that business invoices, purchase orders, bills of lading, or other
equivalent records onto which sales tax is added, including an office
operated for the purpose of buying and selling taxable goods to be
used or consumed by the retail or commercial business, is not a place
of business of the seller if the comptroller determines that the outlet,
office, facility, or location functions or exists to avoid the tax
legally due under Tax Code, Chapters 321, 322, and 323 or exists solely
to rebate a portion of the tax imposed by those chapters to the contracting
business. An outlet, office, facility, or location does not exist
to avoid the tax legally due under Tax Code, Chapters 321, 322, and
323 or solely to rebate a portion of the tax imposed by those chapters
if the outlet, office, facility, or location provides significant
business services, beyond processing invoices, to the contracting
business, including logistics management, purchasing, inventory control,
or other vital business services.
(19) Purchasing office--An outlet, office, facility,
or any location that contracts with a retail or commercial business
to process for that business invoices, purchase orders, bills of lading,
or other equivalent records onto which sales tax is added, including
an office operated for the purpose of buying and selling taxable goods
to be used or consumed by the retail or commercial business.
(20) Remote Seller--As defined in §3.286 of this
title, a remote seller is a seller engaged in business in this state
whose only activity in the state is:
(A) engaging in regular or systematic solicitation
of sales of taxable items in this state by the distribution of catalogs,
periodicals, advertising flyers, or other advertising, by means of
print, radio, or television media, or by mail, telegraphy, telephone,
computer data base, cable, optic, microwave, or other communication
system for the purpose of effecting sales of taxable items; or
(B) soliciting orders for taxable items by mail or
through other media including the Internet or other media that may
be developed in the future.
(21) Seller--This term has the meaning given in §3.286
of this title and also refers to any agent or employee of the seller.
(22) Small business--A legal entity, including a corporation,
partnership, or sole proprietorship, that:
Cont'd... |
