| (6) State agencies. Sales and use taxes must be deposited
with the comptroller within the time period specified by law for deposit
of state funds. State agencies may file sales and use tax returns
through electronic reporting methods provided by the comptroller,
which allocates total sales and use tax deposits by state and local
taxing authority. State agencies that deposit sales and use taxes
according to Accounting Policy Statement Number 8 are not required
to file a separate sales and use tax return, but must manually allocate
total sales and use tax deposits by state and local taxing authority
and deposit those amounts in accordance with the policy. Paragraphs
(1) - (3) of this subsection do not apply to agencies following Accounting
Policy Statement Number 8, as a fully completed deposit request voucher
is deemed to be the sales and use tax return filed by these agencies.
(7) Refunds on exports. Sellers who refund sales tax
on exports based on customs broker certifications should refer to §3.360
of this title (relating to Customs Brokers).
(8) Direct payment permit holders. Yearly and quarterly
filing requirements, as discussed in this subsection, and prepayment
discounts and discounts for timely filing, as discussed in subsection
(h) of this section, do not apply to holders of direct payment permits.
See §3.288 of this title (relating to Direct Payment Procedures
and Qualifications).
(9) Non-permitted purchasers. A person who does not
hold a sales and use tax permit or a direct payment permit must pay
sales or use tax that is due on purchases of taxable items when the
sales or use tax is not collected by the seller. The sales or use
tax is to be remitted on comptroller Form 01-156, Texas Use Tax Return,
its electronic equivalent, or any form promulgated by the comptroller
that succeeds such form.
(A) A non-permitted purchaser who owes less than $1000
in sales and use tax on all purchases made during a calendar year
on which sales and use tax was not collected by the seller must file
the return on or before the 20th of January following the year in
which the purchases were made.
(B) A non-permitted purchaser who owes $1000 or more
in sales and use tax on all purchases made during a calendar year
on which sales and use tax was not collected by the seller must file
a return and remit sales and use taxes due on or before the 20th of
the month following the month when the $1000 threshold is reached
and thereafter file monthly returns and make sales and use tax payments
on all purchases on which sales and use tax is due.
(h) Discounts; prepayments; penalties and interest
relating to filing sales and use tax returns.
(1) Discounts. Unless otherwise provided by this section,
each permit holder may claim a discount for timely filing a sales
and use tax return and paying the taxes due as reimbursement for the
expense of collecting and remitting the sales and use tax. The discount
is equal to 0.5% of the amount of sales and use tax due and may be
claimed on the return for each reporting period and is computed on
the amount timely reported and paid with that return.
(2) Prepayments. Prepayments may be made by permit
holders who file monthly or quarterly sales and use tax returns. The
amount of the prepayment must be a reasonable estimate of the state
and local sales and use tax liability for the entire reporting period.
"Reasonable estimate" means at least 90% of the total amount due or
an amount equal to the actual net tax liability due and paid for the
same reporting period of the immediately preceding year.
(A) A permit holder who makes a timely prepayment based
upon a reasonable estimate of sales and use tax liability may retain
an additional discount of 1.25% of the amount due.
(B) The monthly prepayment is due on or before the
15th day of the month for which the prepayment is made.
(C) The quarterly prepayment is due on or before the
15th day of the second month of the quarter for which the sales and
use tax is due.
(D) A permit holder who makes a timely prepayment must
file a sales and use tax return showing the actual liability and remit
any amount due in excess of the prepayment on or before the 20th day
of the month that follows the quarter or month for which a prepayment
was made. If there is an additional amount due, the permit holder
may retain the 0.5% reimbursement on the additional amount due, provided
that both the sales and use tax return and the additional amount due
are timely filed. If the prepayment exceeded the actual liability,
the permit holder will be mailed an overpayment notice or refund warrant.
(E) Remittances that are less than a reasonable estimate,
as described by this paragraph, are not regarded as prepayments and
the 1.25% discount will not be allowed. If the permit holder owes
more than $1,500 in a calendar quarter, the permit holder is regarded
as a monthly filer. All monthly sales and use tax returns that are
not filed because of the invalid prepayment are subject to late filing
penalty and interest.
(3) Penalties and interest.
(A) If a person does not file a sales and use tax return
together with payment on or before the due date, the person forfeits
all discounts and incurs a mandatory 5.0% penalty. After the first
30 days delinquency, an additional mandatory penalty of 5.0% is assessed
against the person, and after the first 60 days delinquency, interest
begins to accrue at the prime rate, as published in the Wall Street
Journal on the first business day of each calendar year, plus 1.0%.
For taxes that are due on or before December 31, 1999, interest is
assessed at the rate of 12% annually.
(B) A person who fails to timely file a sales and use
tax return when due shall pay an additional penalty of $50. The penalty
is due regardless of whether the person subsequently files the sales
and use tax return or whether no taxes are due for the reporting period.
(C) A seller who advertises, holds out, or states that
the seller will pay the sales and use tax as provided by subsection
(d)(4) of this section and makes a sale of a taxable item:
(i) is presumed to have received or collected the amount
of the sales and use taxes on the sale or storage, use, or consumption
in this state of the taxable item;
(ii) must hold the amount described by clause (i) of
this subparagraph in trust for the benefit of the state; and
(iii) is liable to the state for the amount described
by clause (i) of this subparagraph plus any accrued penalties and
interest on the amount.
(i) Reports of alcoholic beverage sales to retailers.
Each brewer, manufacturer, wholesaler, winery, distributor, or package
store local distributor shall electronically file a report of alcoholic
beverage sales to retailers, as that term is defined in §3.9(e)(2)
of this title, as provided in that section.
(j) Records required for comptroller inspection. See §3.281
of this title and §3.282 of this title.
(k) Resale and exemption certificates. See §3.285
of this title (relating to Resale Certificate; Sales for Resale) and §3.287
of this title (relating to Exemption Certificates).
(l) Suspension of sales and use tax permit.
(1) If a permit holder fails to comply with any provision
of Tax Code, Title 2, or with the rules issued by the comptroller
under those statutes, the comptroller may suspend the permit holder's
sales and use tax permit or permits.
(2) Before a permit holder's sales and use tax permit
is suspended, the permit holder is entitled to a hearing before the
comptroller to show cause why the permit should not be suspended.
The comptroller shall give the permit holder at least 20 days notice.
The notice will include a statement of the matters asserted and procedures
to be followed. A show cause notice for suspension of a sales and
use tax permit shall serve as notice that the comptroller may suspend
any other sales and use tax permits held by the entity.
(3) After a sales and use tax permit has been suspended,
a new permit will not be issued to the same person until the person
has posted sufficient security and satisfied the comptroller that
the person will comply with both the provisions of the law and the
comptroller's rules and regulations.
(m) Refusal to issue sales and use tax permit. The
comptroller is required by Tax Code, §111.0046 (Permit or License),
to refuse to issue any sales and use tax permit to a person who:
(1) is not permitted or licensed as required by law
for a different tax or activity administered by the comptroller; or
(2) is currently delinquent in the payment of any tax
or fee collected by the comptroller.
(n) Cancellation of sales and use tax permits with
no reported business activity.
Cont'd... |
