| (A) Order fulfilled at a place of business of the seller
in Texas. When an order is received at a location that is not a place
of business of the seller in Texas or is received outside of Texas,
and is fulfilled from a place of business of the seller in Texas,
the sale is consummated at the place of business where the order is
fulfilled.
(B) Order not fulfilled from a place of business of
the seller in Texas.
(i) Order fulfilled in Texas. When an order is received
at a location that is not a place of business of the seller in Texas
and is fulfilled from a location in Texas that is not a place of business
of the seller, the sale is consummated at the location in Texas to
which the order is shipped or delivered, or at which the purchaser
of the item takes possession.
(ii) Order not fulfilled in Texas. When an order is
received by a seller at a location that is not a place of business
of the seller in Texas, and is fulfilled from a location outside of
Texas, the sale is not consummated in Texas. However, a use is consummated
at the first point in Texas where the item is stored, used, or consumed
after the interstate transit has ceased. A taxable item delivered
to a point in Texas is presumed to be for storage, use, or consumption
at that point until the contrary is established. Local use tax should
be collected as provided in subsection (d) of this section. Except
as provided in subsection (i)(3) of this section, a remote seller
required to collect state use tax under §3.286(b)(2) of this
title must also collect local use tax.
(3) 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 paragraph 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 of the
item takes possession.
(4) Local sales taxes are due to each local taxing
jurisdiction with sales tax in effect 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 (d) of this section.
(5) 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 of the
seller 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 of the seller 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.
(6) Itinerant vendors; vending machines.
(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 at which the purchaser
of the item takes possession. 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.
(7) The location where the order is received by or
on behalf of the seller means the physical location of a seller or
third party such as an established outlet, office location, or automated
order receipt system operated by or on behalf of the seller where
an order is initially received by or on behalf of the seller and not
where the order may be subsequently accepted, completed or fulfilled.
An order is received when all of the information from the purchaser
necessary to the determination whether the order can be accepted has
been received by or on behalf of the seller. The location from which
a product is shipped shall not be used in determining the location
where the order is received by the seller.
(d) Local 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 (c) 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,
after 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 district taxes
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.
Cont'd... |
