Texas Tax Blog

In July 2023, the legislature passed Senate Bill 3, which increased the no tax due threshold and eliminated reporting requirements for certain entities. In response, the Comptroller’s office has changed the way some entities have to report for franchise tax purposes. No Tax Due threshold has increased to 2.47 million for reports due on or […]

Data Processing Services: Taxable Entering, storing, manipulating, and retrieving a customer’s data is taxable. Below is a list of some taxable data processing services: Data Storage Internet Services such as creating a web page and providing server space. Editing, entering, and manipulating client’s data Totalisator services Compiling and producing records Data conversion services Scanning documents […]

You received your Texas Notification of Audit Results, what are your options? The Texas Notification of Audit Results is the determination of the results from your audit. The notification balance shows results from the audit and does not include any opened balances from report periods. When you receive your Notification of Audit Results it is […]

Motor Vehicles Repairs, Maintenance and Remodels A motor vehicle is a self-propelled vehicle designed to transport people or property or a vehicle designed to be towed by a self-propelled vehicle. This includes but not limited to: Automobiles Buses Motor home Trucks/truck tractors Trailers Travel trailers Motorcycles A motor vehicle does not include: Road building machines […]

Tax Responsibilities with Exempt Customers Certain entities can receive tax exemptions, these include governmental entities, religious, educational, and public service organizations such as a non-profit organization providing athletic competitions for children or a company/department providing public safety in which they receive none or nominal compensation for their work. Federal and Texas government entities are automatically […]

Collecting State and Local Taxes in Texas When selling taxable goods or services in Texas or selling to Texas customers you must collect the 6.25% state sales/use tax and the correct local tax. The local tax can not be more than 2% so the most tax that should be collected is 8.25%. State and local […]

Manufacturing Exemptions in Texas The manufacturing sector in Texas has contributed more than $241 billion annually to the Texas gross state product and has directly employed about 900,000 Texans and supported about 2.2 million other Texas jobs. More than a quarter of all working Texans depend on the state’s manufacturers for their paychecks. The manufacturing […]

Sales Tax On Consulting Services In Texas: What To Know Sales tax refers to a tax paid to state and local tax authorities for the sale of certain goods and services. It is most commonly collected from the customer at the point of sale. As a business owner dealing in taxable goods and services, you […]

Texas Tax-Free Weekend This year’s sales tax holiday will begin on Friday, August 7th, and go through midnight Sunday, August 9th. At this time taxpayers will be able to purchase most clothing, footwear and school supplies (sold for less than $100) tax-free from a Texas store, online catalog, and sellers doing business in Texas.  The […]

Mixed Beverage Tax in Texas If you are looking to start or already selling alcoholic beverages in Texas, you should familiarize yourself with the mixed beverage tax to help you report and pay your taxes correctly. Here’s an overview of what every bar, club or restaurant owner needs to know about these mixed beverage taxes […]

Texas Sales Tax Permit Overview Essentially, when you start any business in Texas, you must get a sales tax permit. This is a permit you apply for to allow you to sell services or products and collect sales tax on behalf of the state. The main objective of this permit is to enable the Comptroller’s […]

Texas Sales and Use Tax for Restaurants Staying tax compliant should be your number one responsibility as a restaurant owner. Restaurant operators in Texas need to familiarize themselves with the state’s tax laws and rates, and the procedure for collection and remittance. When you buy food supplies for resale in your restaurant, the purchase should […]

Sales and Use Tax in Convenience Store In Texas, like other states, customers can partake on many convenience store goods without parting with a fraction of their money in the form of taxes. Under the state’s tax laws, food and other items are tax-free. However, tax is due on many other products sold in convenient […]

Are Janitorial and Cleaning Services Taxable? If you operate a janitorial, or custodial service, you should be collecting sales and use tax. You need to obtain a sales tax permit. Tax is due on the charge to clean a home, office, warehouse, garage, restaurant, or any other building.  For example, you should collect tax on […]

LANDSCAPING AND LAWN CARE SERVICES If you do landscaping, lawn, or plant care, you should be collecting sales and use taxes. Landscaping, lawn, and plant care services include any work you do to maintain or improve lawns, yards, and ornamental plants and trees. Here are some examples that should help you decide which of your […]

Wayfair vs South Dakota. What Does it Mean for Texas? Before 2018, many online retailers were not charging taxes to their clients because of a Supreme court ruling in 1992 (Quill Corp. vs . North Dakota, 504 U.S 2980). In the landmark ruling, the court stated that a state could not force a firm to […]

Overview of Texas Oil and Gas Severance Tax According to Investopedia, severance tax is a select type of tax levied by a state on the extraction of naturally occurring non-renewable resources for sale to consumers living outside the state. Virtually every U.S state has its on-severance tax guideline set by its legislature. It dictates the […]

Audit Process in Texas The state of Texas conducts audits to ensure that businesses are properly collecting, reporting and paying state taxes. Businesses are selected for an audit for various reasons such as: Priority one accounts: the states largest taxpayers in terms of sales tax reported Prior productive accounts: taxpayers previously audited whose tax revealed […]

What is my Franchise Tax Status? The Texas State Comptroller imposes a franchise tax on each taxable entity formed in Texas or doing business in Texas. (NEXUS) This is considered a privilege tax – you pay the franchise tax for the privilege of operating in Texas.  All businesses in Texas must file a franchise tax report […]

Texas Amnesty Program The Texas Amnesty Program which begins on May 1st and ends June 29, 2018 is a program aimed at helping taxpayers that owe taxes get up to date without having to pay for penalties and interest under certain circumstances. Reported periods must be before January 1st 2018 Any periods that the taxpayer […]