| (i) Item transferred to purchaser at time of sale.
When a seller operates a temporary place of business, and items purchased
are transferred to the purchasers at the time of sale, the sales are
consummated at, and local sales tax is due based upon, the location
of the temporary place of business.
(ii) Order accepted at temporary place of business
prior to June 19, 2009. If a seller received an order at a temporary
place of business prior to June 19, 2009, and the order was fulfilled
at another place of business of the seller in this state, the sale
was consummated at, and local sales taxes are due based upon, the
location of the place of business where the order was fulfilled and
not the temporary location where the order was received.
(iii) Order accepted at temporary place of business
on or after June 19, 2009. When a seller receives an order in person
at a temporary place of business and the order is fulfilled at another
location, the sale is consummated at, and local sales taxes are due
based upon, the location of the temporary place of business where
the order was received.
(i) Use tax. The provisions addressing the imposition
of state use tax in §3.346 of this title also apply to the imposition
of local use tax. For example, consistent with §3.346(e) of this
title, all taxable items that are shipped or delivered to a location
in this state that is within the boundaries of a local taxing jurisdiction
are presumed to have been purchased for use in that local taxing jurisdiction
as well as presumed to have been purchased for use in the state.
(1) General rules.
(A) When local use taxes are due in addition to local
sales taxes as provided by subsection (h) of this section, all applicable
use taxes must be collected or accrued in the following order until
the two percent cap is reached: city, county, special purpose district,
and transit authority. If more than one special purpose district use
tax is due, all such taxes are to be collected or accrued before any
transit authority use tax is collected or accrued. See subparagraphs
(D) and (E) of this paragraph.
(B) If a local use tax cannot be collected or accrued
at its full rate without exceeding the two percent cap, the seller
cannot collect it, or any portion of it, and the purchaser is not
responsible for accruing it.
(C) If a seller collects a local sales tax on an item,
or a purchaser accrues a local sales tax on an item, a use tax for
the same type of jurisdiction is not due on the same item. For example,
once a city sales tax has been collected or accrued for an item, no
use tax is due to that same or a different city on that item, but
use tax may be due to a county, special purpose district, or transit
authority. Similarly, if one or more special purpose district sales
taxes have been collected or accrued for an item, no special purpose
district use tax is due on that item, and if one or more transit authority
sales taxes have been collected or accrued for an item, no transit
authority use tax is due on that item.
(D) Collection or accrual of use tax for multiple special
purpose districts. If more than one special purpose district use tax
is in effect at the location where use of an item occurs, the special
purpose district taxes are due in the order of their effective dates,
beginning with the earliest effective date, until the two percent
cap is met. The effective dates of all special purpose district taxes
are available on the comptroller's website. However, if the collection
or accrual of use tax for the district with the earliest effective
date would exceed the two percent cap, the tax for that district is
not due and the seller or purchaser should determine, following the
criteria in subparagraphs (A) - (C) of this paragraph, whether use
tax is due for the district that next became effective.
(i) If the competing special purpose districts became
effective on the same date, the special purpose district taxes are
due in the order of the earliest date for which the election in which
the district residents authorized the imposition of sales and use
tax by the district was held.
(ii) If the elections to impose the local taxes were
held on the same date, the special purpose district taxes are due
in the order of the earliest date for which the enabling legislation
under which each district was created became effective.
(E) Collection or accrual of use tax for multiple transit
authorities. If more than one transit authority use tax is in effect
at the location where use of an item occurs, and the two percent cap
has not been met, the transit authority taxes are due in the order
of their effective dates, beginning with the earliest effective date,
until the two percent cap is met. The effective dates of all transit
authority taxes are available on the comptroller's website. However,
if the collection or accrual of use tax for the authority with the
earliest effective date would exceed the two percent cap, the tax
for that authority is not due and the seller or purchaser should determine,
following the criteria in subparagraphs (A) - (D) of this paragraph,
whether use tax is due for the authority that next became effective.
(i) If the competing transit authorities became effective
on the same date, the transit authority taxes are due in the order
of the earliest date for which the election in which the authority
residents authorized the imposition of sales and use tax by the authority
was held.
(ii) If the elections to impose local taxes were held
on the same date, the transit authority use taxes are due in the order
of the earliest date for which the enabling legislation under which
each authority was created became effective.
(2) General use tax rules applied to specific situations.
The following fact patterns explain how local use tax is to be collected
or accrued and remitted to the comptroller based on, and subject to,
the general rules in paragraph (1) of this subsection.
(A) Sale consummated outside the state, item delivered
from outside the state or from a location in Texas that is not operated
by the seller - local use tax due. If a sale is consummated outside
of this state according to the provisions of subsection (h) of this
section, and the item purchased is either shipped or delivered to
a location in this state as designated by the purchaser from a location
outside of the state, or if the order is drop shipped directly to
the purchaser from a third-party supplier, local use tax is owed based
upon the location in this state to which the order is shipped or delivered.
If the seller is engaged in business in the local taxing jurisdiction
into which the order is shipped or delivered, the seller is responsible
for collecting the local use tax due on the sale. If the seller does
not collect the local use taxes due on the sale, the purchaser is
responsible for accruing such taxes and remitting them directly to
the comptroller according to the provisions in paragraph (1) of this
subsection. For example, if an order for a taxable item is received
by a seller at a location outside of Texas, and the order is shipped
to the purchaser from a location outside of the state, local use tax
is due based upon the location to which the order is shipped or delivered.
(B) Sale consummated in Texas outside a local taxing
jurisdiction, item delivered into one or more local taxing jurisdictions
- local use tax due. If a sale is consummated at a location in Texas
that is outside of the boundaries of any local taxing jurisdiction
according to the provisions of subsection (h) of this section, and
the order is shipped or delivered to the purchaser at a location in
this state that is within the boundaries of one or more local taxing
jurisdictions, local use tax is due based on the location to which
the items are shipped or delivered. If the seller is engaged in business
in the local taxing jurisdiction where the items are shipped or delivered,
the seller is responsible for collecting the local use taxes due.
If the seller fails to collect any local use taxes due, the purchaser
is responsible for accruing such taxes and remitting them directly
to the comptroller. For example, if a seller uses its own delivery
vehicle to transport a taxable item from a place of business that
is outside the boundaries of a local taxing jurisdiction to a delivery
location designated by a purchaser that is inside the boundaries of
a local taxing jurisdiction, the seller is responsible for collecting
the local use taxes due based on the location to which the items are
delivered.
(C) Sale consummated in any local taxing jurisdictions
imposing less than 2.0% in total local taxes - local sales taxes,
and possibly use taxes, due. If a sale is consummated at a location
in Texas where the total local sales tax rate imposed by the taxing
jurisdictions in effect at that location does not equal or exceed
2.0% according to the provisions of subsection (h) of this section,
and the item is shipped or delivered to the purchaser at a location
in this state that is inside the boundaries of a different local taxing
jurisdiction, additional local use tax may be due based on the location
to which the order is shipped or delivered, subject to the two percent
cap. If the seller is engaged in business in the local taxing jurisdiction
into which the order is shipped or delivered, the seller is responsible
for Cont'd... |
