| (2) Use tax is not applicable to the storage, use,
or other consumption of taxable items in this state if the sale, lease,
or rental of the taxable items would be exempt from the sales tax
had the items been purchased within Texas.
(d) User liability, payment of the tax and credit for
tax paid to another state.
(1) The person storing, using, or consuming a taxable
item in this state is liable for the tax imposed under this section,
and except as provided by paragraph (2) of this subsection, the liability
continues until the tax is paid to the state.
(2) The liability may be extinguished by payment of
the Texas use tax directly to the comptroller or to a seller authorized
to collect it. See the use tax permit requirements for out-of-state
sellers in §3.286 of this title.
(3) The basis of the use tax is the total purchase
price of the taxable item, including any related charges such as shipping
and handling fees, regardless of whether such fees are separately
stated. See §3.303 of this title (relating to Transportation
and Delivery Charges).
(4) The tax must be reported and remitted to the comptroller
with the return covering the period in which the taxable items are
first stored, used, or otherwise consumed in Texas as provided by §3.286
of this title. Purchasers without a sales and use tax permit should
refer to §3.286 of this title to view the tax responsibilities
of non-permitted purchasers.
(5) Credit is allowed against the use tax liability
to the extent that a similar sales or use tax was legally due and
paid to another state under the conditions provided in Tax Code, Chapter
141 and Chapter 151, §151.303. See §3.338 of this title
(relating to Multistate Tax Credits and Allowance of Credit for Tax
Paid to Suppliers).
(e) Presumption.
(1) Tangible personal property that is shipped or brought
into this state by, or at the direction of, a purchaser is presumed,
in the absence of evidence to the contrary, to have been purchased
from a seller for storage, use, or consumption in this state. A taxable
service used in this state is presumed, in the absence of evidence
to the contrary, to have been purchased from a seller for use in this
state.
(2) Tangible personal property purchased out of state
and used for its intended purpose outside of Texas for more than one
year before the date of entry into Texas will not be presumed to have
been purchased for use in Texas. This presumption applies only if
the use outside Texas is substantial and constitutes a primary use
for which the property was purchased. Either the comptroller or the
purchaser may introduce evidence to establish the intent or absence
of intent to use the taxable items in Texas at the time of purchase.
(3) If tangible personal property is shipped outside
of Texas by the seller such that the transaction is exempt from sales
tax under Tax Code, §151.330(a), and the property is outside
of Texas for less than one year before reentering Texas, the presumption
is that the property is purchased for use in Texas.
(f) Local use tax is due to the jurisdictions where
taxable items are first stored, used, or consumed.
(g) Direct payment permit holders - election to pay
use tax at time of first storage or upon first removal from storage
for use in Texas. If, at the time an item is purchased and stored
in the state, it is not known if the item will be used in Texas or
removed from the state for use elsewhere, a direct payment permit
holder can elect to either pay state and local use tax at the time
an item is first removed from storage for use in Texas or elect to
pay state and local use tax on the item when first stored in Texas.
This election must consistently apply to all stored items once the
election is made and consistently apply to all state and local taxes
that are due. Local tax is due to the jurisdictions where the item
is first stored regardless of which election is chosen. A direct pay
permit holder who elects to pay Texas use tax when items are first
stored may claim a refund as provided by other sections of this title
of taxes paid on items that are removed from storage in Texas for
use elsewhere.
|
| Source Note: The provisions of this §3.346 adopted to be effective March 7, 1979, 4 TexReg 554; amended to be effective November 17, 1981, 6 TexReg 4070; amended to be effective December 3, 1984, 9 TexReg 5929; amended to be effective December 21, 1990, 15 TexReg 7029; amended to be effective February 9, 2011, 36 TexReg 587; amended to be effective November 11, 2012, 37 TexReg 8857 |
