| (ii) at the remote seller's election, the single local
use tax rate published in the Texas Register.
(B) A remote seller that is storing tangible personal
property in Texas to be used for fulfillment at a facility of a marketplace
provider that has certified that it will assume the rights and duties
of a seller with respect to the tangible personal property, as provided
for in §3.286 of this title, may elect the single local use tax
rate under subparagraph (A)(ii) of this paragraph.
(C) Notice to the comptroller of election and revocation
of election.
(i) Before using the single local use tax rate, a remote
seller must notify the comptroller of its election using a form prescribed
by the comptroller. A remote seller may also notify the comptroller
of the election on its use tax permit application form. The remote
seller must use the single local use tax rate for all of its sales
of taxable items until the election is revoked as provided in clause
(ii) of this subparagraph.
(ii) A remote seller may revoke its election by filing
a form prescribed by the comptroller. If the comptroller receives
the notice by October 1, the revocation will be effective January
1 of the following year. If the comptroller receives the notice after
October 1, the revocation will be effective January 1 of the year
after the following year. For example, a remote seller must notify
the comptroller by October 1, 2020, for the revocation to be effective
January 1, 2021. If the comptroller receives the revocation on November
1, 2020, the revocation will be effective January 1, 2022.
(D) Single local use tax rate.
(i) The single local use tax rate in effect for the
period beginning October 1, 2019, and ending December 31, 2019, is
1.75%.
(ii) The single local use tax rate in effect for the
period beginning January 1, 2020, and ending December 31, 2020, is
1.75%.
(E) Annual publication of single local use tax rate.
Before the beginning of a calendar year, the comptroller will publish
notice of the single local use tax rate in the Texas
Register that will be in effect for that calendar year.
(F) Calculating the single local use tax rate. The
single local use tax rate effective in a calendar year is equal to
the estimated average rate of local sales and use taxes imposed in
this state during the preceding state fiscal year. As soon as practicable
after the end of a state fiscal year, the comptroller must determine
the estimated average rate of local sales and use taxes imposed in
this state during the preceding state fiscal year by:
(i) dividing the total amount of net local sales and
use taxes remitted to the comptroller during the state fiscal year
by the total amount of net state sales and use tax remitted to the
comptroller during the state fiscal year;
(ii) multiplying the amount computed under clause (i)
of this subparagraph by the rate provided in Tax Code, §151.051;
and
(iii) rounding the amount computed under clause (ii)
of this subparagraph to the nearest .0025.
(G) Direct refund. A purchaser may request a refund
based on local use taxes paid in a calendar year for the difference
between the single local use tax rate paid by the purchaser and the
amount the purchaser would have paid based on the combined tax rate
for all applicable local use taxes. Notwithstanding the refund requirements
under §3.325(a)(1) of this title (relating to Refunds and Payments
Under Protest), a non-permitted purchaser may request a refund directly
from the comptroller for the tax paid in the previous calendar year,
no earlier than January 1 of the following calendar year within the
statute of limitation under Tax Code, 111.104 (Refunds).
(H) Marketplace providers. Notwithstanding subparagraph
(A) of this paragraph, marketplace providers may not use the single
local use tax rate and must compute the amount of local use tax to
collect and remit using the combined tax rate of all applicable local
use taxes.
(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 (c) 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.
(6) A purchaser is not liable for additional local
use tax if the purchaser pays local use tax using the rate elected
by an eligible remote seller according to paragraph (3) of this subsection.
The remote seller must be identified on the comptroller's website
as electing to use the single local use tax rate. A purchaser must
verify that the remote seller is listed on the comptroller's website.
If the remote seller is not listed on the comptroller's website, the
purchaser will be liable for additional use tax due in accordance
to paragraph (4) of this subsection.
(j) Items purchased under a direct payment permit.
(1) When taxable items are purchased under a direct
payment permit, local use tax is due based upon the location where
the permit holder first stores the taxable items, except that if the
taxable items are not stored, then local use tax is due based upon
the location where the taxable items are first used or otherwise consumed
by the permit holder.
(2) If, in a local taxing jurisdiction, storage facilities
contain taxable items purchased under a direct payment exemption certificate
and at the time of storage it is not known whether the taxable items
will be used in Texas, then the taxpayer may elect to report the use
tax either when the taxable items are first stored in Texas or are
first removed from inventory for use in Texas, as long as use tax
is reported in a consistent manner. See also §3.288(i) of this
title (relating to Direct Payment Procedures and Qualifications) and §3.346(g)
of this title.
(3) If local use tax is paid on stored items that are
subsequently removed from Texas before they are used, the tax may
be recovered in accordance with the refund and credit provisions of §3.325
of this title and §3.338 of this title (relating to Multistate
Tax Credits and Allowance of Credit for Tax Paid to Suppliers).
(k) Special rules for certain taxable goods and services.
Sales of the following taxable goods and services are consummated
at, and local tax is due based upon, the location indicated in this
subsection.
(1) Amusement services. Local tax is due based upon
the location where the performance or event occurs. For more information
on amusement services, refer to §3.298 of this title (relating
to Amusement Services).
(2) Cable services. When a service provider uses a
cable system to provide cable television or bundled cable services
to customers, local tax is due as provided for in §3.313 of this
title. When a service provider uses a satellite system to provide
cable services to customers, no local tax is due on the service in
accordance with the Telecommunications Act of 1996, §602.
(3) Florists. Local sales tax is due on all taxable
items sold by a florist based upon the location where the order is
received, regardless of where or by whom delivery is made. Local use
tax is not due on deliveries of taxable items sold by florists. For
example, if the place of business of the florist where an order is
taken is not within the boundaries of any local taxing jurisdiction,
no local sales tax is due on the item and no local use tax is due
regardless of the location of delivery. If a Texas florist delivers
an order in a local taxing jurisdiction at the instruction of an unrelated
florist, and if the unrelated florist did not take the order within
the boundaries of a local taxing jurisdiction, local use tax is not
due on the delivery. For more information about florists' sales and
use tax obligations, refer to §3.307 of this title (relating
to Florists).
Cont'd... |
