| (8) a person or firm licensed as an accountant or accounting
firm under Occupations Code, Chapter 901, an owner of an accounting
firm, or an employee of an accountant or accounting firm.
(j) A charge for using a slim-jim or similar device
to open a locked vehicle is not taxable, even when the service provider
is a licensed locksmith.
(k) Taxable under other provisions. Persons whose activities
are not defined as security services may nonetheless be performing
a service that is taxable under other provisions. Examples include,
but are not limited to:
(1) persons engaged in the business of obtaining and
furnishing credit information. See §3.343 of this title (relating
to Credit Reporting Services);
(2) insurance adjusters, insurance investigators, and/or
claims processors performing services in connection with a policy
of insurance. Although not taxable as security services, some insurance
services are subject to sales and use tax. See §3.355 of this
title (relating to Insurance Services);
(3) persons who install electronic access control devices,
as that term is defined in Occupations Code, §1702.002(a)(6-a)
in existing nonresidential improvements to real property. Although
not taxable as a security service, the installation of such a device
in an existing nonresidential real property improvement may be taxable
as nonresidential real property repair, remodeling or restoration.
See §3.357 of this title (relating to Nonresidential Real Property
Repair, Remodeling, and Restoration; Real Property Maintenance).
(l) Undercover agents. The fact that a security service
provider may be performing his services by furnishing an undercover
agent will not affect the applicability of sales tax to the service
transaction between the employer and the consumer. The employer of
the undercover agent is considered to be providing security services
to a client, and that transaction is subject to the sales tax.
(m) Local taxes. Local sales and use taxes (city, county,
transit authority, and special purpose district) apply to services
in the same way as they apply to tangible personal property. A service
provider must collect local sales taxes if the service provider's
place of business is within a local taxing jurisdiction, even if the
service is actually provided at a location outside that jurisdiction.
If the place of business is outside such a jurisdiction but the service
is provided to a customer within a local taxing jurisdiction, local
use taxes apply and the service provider is responsible for collecting
them. For information on the collection and reporting responsibilities
of providers and purchasers of taxable services, see §3.334 of
this title (relating to Local Sales and Use Taxes).
(n) Use tax. If a seller of a service is not engaged
in business in Texas or in a specific local taxing jurisdiction and
is not required to collect Texas state or local tax, it is the Texas
customer's responsibility to report the use tax directly to this office.
(o) Service benefit location. If the security service
provider is in Texas and the customer is located only in Texas, Texas
tax is due, and must be collected by the security service provider.
(p) Service benefit location--multistate customer.
(1) To the extent a security service is provided for
a separate, identifiable segment of a customer's business, the service
is presumed to benefit the location where that part of the customer's
business is conducted.
(2) To the extent the use of the service cannot be
assigned to an identifiable segment of a customer's business, the
service is presumed to be used to support the administration or operation
of the customer's business generally. The security service is presumed
to be used at the customer's principal place of business. The principal
place of business means the place from which the trade or business
is directed or managed.
(3) If a multistate customer claims that part of the
security service benefits the customer's business at locations both
within and outside the state, the customer must provide the security
service provider with an exemption certificate in lieu of tax. It
will then be the customer's responsibility to report the tax to this
office for that portion of the security service that benefits Texas
locations. The security service will not be taxable to the extent
the customer can establish benefit outside Texas. A multistate customer
may use any reasonable method for allocation that is supported by
business records.
(4) A security service provider who accepts an exemption
certificate in good faith is relieved of responsibility for collecting
and remitting tax on transactions to which the certificate relates.
|
| Source Note: The provisions of this §3.333 adopted to be effective March 24, 1988, 13 TexReg 1221; amended to be effective November 13, 1989, 14 TexReg 5786; amended to be effective November 26, 1993, 19 TexReg 84; amended to be effective March 23, 1995, 20 TexReg 1749; amended to be effective February 24, 2010, 35 TexReg 1468; amended to be effective February 21, 2011, 35 TexReg 1159; amended to be effective June 25, 2015, 40 TexReg 3999 |
