| (4) Landline telecommunications services. Local taxes
due on landline telecommunications services are based upon the location
of the device from which the call or other transmission originates.
If the seller cannot determine where the call or transmission originates,
local taxes due are based on the address to which the service is billed.
For more information, refer to §3.344 of this title (relating
to Telecommunications Services).
(5) Marketplace provider sales. Local taxes are due
on sales of taxable items through a marketplace provider based on
the location in this state to which the item is shipped or delivered
or at which the purchaser takes possession. For more information,
refer to §3.286 of this title.
(6) Mobile telecommunications services. Local taxes
due on mobile telecommunications services are based upon the location
of the customer's place of primary use as defined in §3.344(a)(8)
of this title, and local taxes are to be collected as indicated in §3.344(h)
of this title.
(7) Motor vehicle parking and storage. Local taxes
are due based on the location of the space or facility where the vehicle
is parked. For more information, refer to §3.315 of this title
(relating to Motor Vehicle Parking and Storage).
(8) Natural gas and electricity. Any local city and
special purpose taxes due are based upon the location where the natural
gas or electricity is delivered to the purchaser. As explained in
subsection (l)(1) of this section, residential use of natural gas
and electricity is exempt from all county sales and use taxes and
all transit authority sales and use taxes, most special purpose district
sales and use taxes, and many city sales and use taxes. A list of
the cities and special purpose districts that do impose, and those
that are eligible to impose, local sales and use tax on residential
use of natural gas and electricity is available on the comptroller's
website. For more information, also refer to §3.295 of this title
(relating to Natural Gas and Electricity).
(9) Nonresidential real property repair and remodeling
services. Local taxes are due on services to remodel, repair, or restore
nonresidential real property based on the location of the job site
where the remodeling, repair, or restoration is performed. See also
subsection (h)(2)(B) of this section and §3.357 of this title.
(10) Residential real property repair and remodeling
and new construction of a real property improvement performed under
a separated contract. When a contractor constructs a new improvement
to realty pursuant to a separated contract or improves residential
real property pursuant to a separated contract, the sale is consummated
at the job site at which the contractor incorporates taxable items
into the customer's real property. See also subsection (h)(2)(A) of
this section and §3.291 of this title.
(11) Waste collection services. Local taxes are due
on garbage or other solid waste collection or removal services based
on the location at which the waste is collected or from which the
waste is removed. For more information, refer to §3.356 of this
title (relating to Real Property Service).
(l) Special exemptions and provisions applicable to
individual jurisdictions.
(1) Residential use of natural gas and electricity.
(A) Mandatory exemptions from local sales and use tax.
Residential use of natural gas and electricity is exempt from most
local sales and use taxes. Counties, transit authorities, and most
special purpose districts are not authorized to impose sales and use
tax on the residential use of natural gas and electricity. Pursuant
to Tax Code, §321.105, any city that adopted a local sales and
use tax effective October 1, 1979, or later is prohibited from imposing
tax on the residential use of natural gas and electricity. See §3.295
of this title.
(B) Imposition of tax allowed in certain cities. Cities
that adopted local sales tax prior to October 1, 1979, may, in accordance
with the provisions in Tax Code, §321.105, choose to repeal the
exemption for residential use of natural gas and electricity. The
comptroller's website provides a list of cities that impose tax on
the residential use of natural gas and electricity, as well as a list
of those cities that do not currently impose the tax, but are eligible
to do so.
(C) Effective January 1, 2010, a fire control, prevention,
and emergency medical services district organized under Local Government
Code, Chapter 344 that imposes sales tax under Tax Code, §321.106,
or a crime control and prevention district organized under Local Government
Code, Chapter 363 that imposes sales tax under Tax Code, §321.108,
that is located in all or part of a municipality that imposes a tax
on the residential use of natural gas and electricity as provided
under Tax Code, §321.105 may impose tax on residential use of
natural gas and electricity at locations within the district. A list
of the special purpose districts that impose tax on residential use
of natural gas and electricity and those districts eligible to impose
the tax that do not currently do so is available on the comptroller's
website.
(2) Telecommunication services. Telecommunications
services are exempt from all local sales taxes unless the governing
body of a city, county, transit authority, or special purpose district
votes to impose sales tax on these services. However, since 1999,
under Tax Code, §322.109(d), transit authorities created under
Transportation Code, Chapter 451 cannot repeal the exemption unless
the repeal is first approved by the governing body of each city that
created the local taxing jurisdiction. The local sales tax is limited
to telecommunications services occurring between locations within
Texas. See §3.344 of this title. The comptroller's website provides
a list of local taxing jurisdictions that impose tax on telecommunications
services.
(3) Emergency services districts.
(A) Authority to exclude territory from imposition
of emergency services district sales and use tax. Pursuant to the
provisions of Health and Safety Code, §775.0751(c-1), an emergency
services district wishing to enact a sales and use tax may exclude
from the election called to authorize the tax any territory in the
district where the sales and use tax is then at 2.0%. The tax, if
authorized by the voters eligible to vote on the enactment of the
tax, then applies only in the portions of the district included in
the election. The tax does not apply to sales made in the excluded
territories in the district and sellers in the excluded territories
should continue to collect local sales and use taxes for the local
taxing jurisdictions in effect at the time of the election under which
the district sales and use tax was authorized as applicable.
(B) Consolidation of districts resulting in sales tax
sub-districts. Pursuant to the provisions of Health and Safety Code, §775.018(f),
if the territory of a district proposed under Health and Safety Code,
Chapter 775 overlaps with the boundaries of another district created
under that chapter, the commissioners court of each county and boards
of the counties in which the districts are located may choose to create
a consolidated district in the overlapping territory. If two districts
that want to consolidate under Health and Safety Code, §775.024
have different sales and use tax rates, the territory of the former
districts located within the consolidated area will be designated
as sub-districts and the sales tax rate within each sub-district will
continue to be imposed at the rate the tax was imposed by the former
district that each sub-district was part of prior to the consolidation.
(4) East Aldine Management District.
(A) Special sales and use tax zones within district;
separate sales and use tax rate. As set out in Special District Local
Laws Code, §3817.154(e) and (f), the East Aldine Management District
board may create special sales and use tax zones within the boundaries
of the District and, with voter approval, enact a special sales and
use tax rate in each zone that is different from the sales and use
tax rate imposed in the rest of the district.
(B) Exemptions from special zone sales and use tax.
The sale, production, distribution, lease, or rental of; and the use,
storage, or other consumption within a special sales and use tax zone
of; a taxable item sold, leased, or rented by the entities identified
in clauses (i) - (vi) of this subparagraph are exempt from the special
zone sales and use tax. State and all other applicable local taxes
apply unless otherwise exempted by law. The special zone sales and
use tax exemption applies to:
(i) a retail electric provider as defined by Utilities
Code, §31.002;
(ii) an electric utility or a power generation company
as defined by Utilities Code, §31.002;
(iii) a gas utility as defined by Utilities Code, §101.003
or §121.001, or a person who owns pipelines used for transportation
or sale of oil or gas or a product or constituent of oil or gas;
(iv) a person who owns pipelines used for the transportation
or sale of carbon dioxide;
Cont'd... |
