| (4) Purchaser responsible for accruing and remitting
local taxes if seller fails to collect.
(A) If a seller does not collect the state sales tax,
any applicable local sales taxes, or both on a sale of a taxable item
that is consummated in Texas, then the purchaser is responsible for
filing a return and paying the tax. The local sales taxes due are
based on the location in this state where the sale is consummated
as provided in subsection (h) of this section.
(B) A purchaser who buys an item for use in Texas from
a seller who does not collect the state use tax, any applicable local
use taxes, or both, is responsible for filing a return and paying
the tax. The local use taxes due are based on the location where the
item is first stored, used, or consumed by the purchaser.
(C) For more information about how to report and pay
use tax directly to the comptroller, see §3.286 of this title.
(5) Local tax is due on the sales price of a taxable
item, as defined in Tax Code, §151.007, in the report period
in which the taxable item is purchased or the period in which the
taxable item is first stored, used, or otherwise consumed in a local
taxing jurisdiction.
(h) Local sales tax. Determining the local taxing jurisdictions
to which sales tax is due; consummation of sale.
(1) General rule. Except for the special rules applicable
to direct payment permit purchases and certain taxable items as provided
in subsections (j) and (k) of this section, each sale of a taxable
item is consummated at the location indicated by the provisions of
this subsection. Local sales taxes are due to each local taxing jurisdiction
in effect at the location where the sale is consummated. Local use
tax may also be due if the total amount of local sales taxes due does
not reach the two percent cap, and the item purchased is shipped or
delivered to a location in one or more different local taxing jurisdictions,
as provided in subsection (i) of this section.
(2) Multiple special purpose district taxes, multiple
transit authority sales taxes, or a combination of the two may apply
to a single transaction. If the sale of a taxable item is consummated
at a location within the boundaries of multiple special purpose districts
or transit authorities, local sales tax is owed to each of the jurisdictions
in effect at that location. For example, a place of business located
in the city of San Antonio is within the boundaries of both the San
Antonio Advanced Transportation District and the San Antonio Metropolitan
Transit Authority, and the seller is required to collect sales tax
for both transit authorities. Similarly, a place of business in Flower
Mound is located within the boundaries of two special purpose districts,
the Flower Mound Crime Control District and the Flower Mound Fire
Control District, and the seller is responsible for collecting sales
tax for both special purpose districts.
(3) Consummation of sale. The following rules, taken
from Tax Code, §321.203 and §323.203, apply to all sellers
engaged in business in this state, regardless of whether they have
a place of business in Texas or multiple places of business in the
state.
(A) Order placed in person at a seller's place of business
in Texas. When a purchaser places an order for a taxable item in person
at a seller's place of business in Texas, the sale of that item is
consummated at that place of business, regardless of the location
where the order is fulfilled, except in the limited circumstances
described in subparagraph (F) of this paragraph, concerning qualifying
economic development agreements.
(B) Order received at a place of business in Texas,
fulfilled at a location that is not a place of business. When an order
that is placed over the telephone, through the Internet, or by any
means other than in person is received by the seller at a place of
business in Texas, and the seller fulfills the order at a location
that is not a place of business of the seller in Texas, such as a
warehouse or distribution center, the sale is consummated at the place
of business at which the order for the taxable item is received.
(C) Order fulfilled at a place of business in Texas.
When an order is placed in person at a location that is not a place
of business of the seller in this state, such as a kiosk, or when
an order is placed over the telephone, through the Internet, or by
any means other than in person, and the seller fulfills the order
at a location that is a place of business in Texas, the sale is consummated
at the place of business where the order is fulfilled.
(D) Order fulfilled within the state at a location
that is not a place of business. When an order is received by a seller
at any location other than a place of business of the seller in this
state, and the seller fulfills the order at a location in Texas that
is not a place of business of the seller, then the sale is consummated
at the location in Texas to which the order is shipped or delivered,
or the location where it is transferred to the purchaser.
(E) Order received outside of the state, fulfilled
outside of the state. When an order is received by a seller at a location
outside of Texas, and the order is shipped or delivered into a local
taxing jurisdiction from a location outside of the state, the sale
is not consummated at a location in Texas. However, local use tax
is due based upon the location in this state to which the item is
shipped or delivered or at which possession of the item is taken by
the purchaser as provided in subsection (i) of this section.
(F) Exception for qualifying economic development agreements
entered into before January 1, 2009, pursuant to Tax Code, §321.203(c-4)
- (c-5) or §323.203(c-4) - (c-5). This subparagraph is effective
until September 1, 2024. If applicable, the local sales tax due on
the sale of a taxable item is based on the location of the qualifying
warehouse, which is a place of business of the seller, from which
the item is shipped or delivered or at which the purchaser takes possession
of the item.
(4) Orders received by traveling salespersons. Orders
taken by traveling salespersons are received by the seller at the
administrative office or other place of business from which the traveling
salesperson operates, and such sales are consummated at the location
indicated in paragraph (3) of this subsection. For example, if a traveling
salesperson who operates out of a place of business of a seller in
Texas takes an order for a taxable item, and the order is fulfilled
at a location that is not a place of business of the seller in this
state, the sale is consummated at the place of business from which
the salesperson operates, in accordance with paragraph (3)(B) of this
subsection. Similarly, if a traveling salesperson takes an order for
a taxable item, and the order is fulfilled at a place of business
of the seller in this state, the sale is consummated at the location
of the place of business where the order is fulfilled, in accordance
with paragraph (3)(C) of this subsection.
(5) Drop shipments.
(A) When an order for a taxable item is received at
a seller's place of business in Texas, or by a traveling salesperson
operating out of a place of business in this state, and the item is
drop-shipped directly to the purchaser from a third-party supplier,
the sale is consummated at, and local sales tax is due based upon,
the location of the place of business where the order is received.
When an order for a taxable item is received by a seller at one location,
but shipped by the seller to the purchaser from a different location,
the sale is consummated at, and local sales tax is due based upon,
the location designated in paragraph (3) of this subsection. If the
local sales taxes due based on the location of the seller's place
of business at which the sale is consummated equal less than 2.0%,
additional local use tax may be due based upon the location in this
state to which the purchased item is shipped or delivered or at which
possession of the item is taken by the purchaser as provided in subsection
(i) of this section.
(B) When an order for a taxable item is received by
the seller at a location outside of Texas, or by a traveling salesperson
operating from a location outside of this state, and the item is drop-shipped
directly to the purchaser from a third-party supplier, the item is
subject to use tax. See subsection (i) of this section concerning
use tax.
(6) Itinerant vendors; vending machines; temporary
places of business.
(A) Itinerant vendors. Sales made by itinerant vendors
are consummated at, and itinerant vendors must collect sales tax based
upon, the location where the item is delivered or where the purchaser
takes possession of the item. Itinerant vendors do not have any responsibility
to collect use tax.
(B) Vending machines. Sales of taxable items made from
a vending machine are consummated at the location of the vending machine.
See §3.293 of this title (relating to Food; Food Products; Meals;
Food Service) for more information about vending machine sales.
(C) Temporary places of business.
Cont'd... |
