Chapter 151

Limited Sales, Excise, and Use Tax

Subchapter A. General Provisions

151.001 Short Title 151.002 Applicability of Definitions, Etc 151.0028 "amusement Services" 151.003 "business" 151.0031 "computer Program" 151.0033 "cable Television Service" 151.0034 "credit Reporting Service" 151.0035 "data Processing Service" 151.0036 "debt Collection Service" 151.0038 "information Service" 151.0039 "insurance Service" 151.00393 Internet 151.00394 Internet Access Service 151.004 "in This State" 151.0045 "personal Services" 151.0047 "real Property Repair and Remodeling" 151.0048 Real Property Service 151.005 "sale" or "purchase" 151.006 "sale for Resale." 151.007 "sales Price" or "receipts" 151.0075 "security Service" 151.008 "seller" or "retailer" 151.009 "tangible Personal Property" 151.010 Taxable Item 151.0101 "taxable Services" 151.0102 "telephone Answering Services" 151.0103 Telecommunications Services 151.01032 "telephone Prepaid Calling Card" 151.0104 Telephone Company 151.011 "use" and "storage" 151.012 Effective Date of Tax Rate Changes

Subchapter B. Administration and Records

151.021 Employees 151.022 Retroactive Effect of Rules 151.023 Investigations and Audits 151.0231 Managed Audits 151.024 Persons Who May Be Regarded as Retailers 151.0241 Persons Performing Disaster- or Emergency-Related Work 151.0242 Marketplace Providers and Marketplace Sellers 151.025 Records Required to Be Kept 151.026 Out-of-State Records 151.027 Confidentiality of Tax Information 151.029 Remedies Not Exclusive

Subchapter C. Imposition and Collection of Sales Tax

151.051 Sales Tax Imposed 151.0515 Texas Emissions Reduction Plan Surcharge 151.052 Collection by Retailer 151.053 Sales Tax Brackets 151.054 Gross Receipts Presumed Subject to Tax 151.055 Sales of Items Acquired for Lease or Rental 151.056 Property Consumed in Contracts to Improve Real Property 151.0565 Taxable Items Sold or Provided under Destination Management Services Contracts 151.058 Property Used to Provide Taxable Services and Sale Price of Taxable Services 151.0595 Single Local Tax Rate for Remote Sellers 151.060 Property Consumed in Repair of Motor Vehicle 151.061 Sourcing of Charges for Mobile Telecommunications Services

Subchapter D. Imposition and Collection of Use Tax

151.101 Use Tax Imposed 151.102 User Liable for Tax 151.103 Collection by Retailer; Purchaser's Receipt 151.104 Sale for Storage, Use, or Consumption Presumed 151.105 Importation for Storage, Use, or Consumption Presumed 151.106 Registration of Retailers 151.107 Retailer Engaged in Business in This State 151.108 Internet Hosting

Subchapter E. Resale and Exemption Certificates

151.151 Resale Certificate 151.152 Resale Certificate: Form 151.153 Resale Certificate: Commingled Fungible Goods 151.154 Resale Certificate: Liability of Purchaser 151.155 Exemption Certificate 151.1551 Registration Number Required for Timber and Certain Agricultural Items 151.156 Tax-Free Purchases of Certain Exported Items 151.157 Customs Brokers 151.1575 Requirements Relating to Issuing Documentation Showing Exportation of Property 151.158 Export Stamps 151.159 Refunds; Identification Cards 151.160 Deposits

Subchapter F. Sales Tax Permits

151.201 Sales Tax Permits 151.202 Application for Permit 151.2021 Cancellation of Inactive Permit 151.203 Suspension and Revocation of Permit 151.204 Reissued or New Permit After Revocation or Suspension 151.205 Appeals

Subchapter G. Seller's and Retailer's Security

151.251 Security Required 151.252 Temporary Permit 151.253 Security: Requirements 151.254 Exemption from Filing Security 151.255 Notice 151.256 Failure to Provide Security: Loss of Permit 151.257 Forfeiture of Security: Determination 151.258 Sale of Security 151.259 Security Insufficient to Pay Tax 151.260 Security Sufficient to Pay Tax 151.261 Notice to Cities 151.262 Suits by Attorney General

Subchapter H. Exemptions

151.301 "exempted from the Taxes Imposed by This Chapter" 151.302 Sales for Resale 151.3021 Packaging Supplies and Wrapping 151.303 Previously Taxed Items: Use Tax Exemption or Credit 151.304 Occasional Sales 151.305 Coin-Operated Machine Sales 151.3051 Sales Through Certain Vending Machines 151.306 Transfers of Common Interests in Property 151.307 Exemptions Required by Prevailing Law 151.3071 Installation of Certain Equipment for Export 151.308 Items Taxed by Other Law 151.309 Governmental Entities 151.310 Religious, Educational, and Public Service Organizations 151.3101 Amusement Services Exemptions 151.3102 Sale by Nonprofit Organization at County Fair 151.3105 Bingo Equipment Purchased by Certain Organizations 151.311 Taxable Items Incorporated into or Used for Improvement of Realty of an Exempt Entity 151.3111 Services on Certain Exempted Personal Property 151.312 Periodicals and Writings of Religious, Philanthropic, Charitable, Historical, Scientific, and Similar Organizations 151.313 Health Care Supplies 151.3131 Firearm Safety Equipment 151.3132 Feminine Hygiene Products 151.3133 Maternity Clothing 151.3134 Breast Milk Pumping Products 151.3135 Baby Bottles 151.314 Food and Food Products 151.3141 Food Stamp Purchases 151.315 Water 151.316 Agricultural Items 151.3162 Timber Items 151.317 Gas and Electricity 151.3171 Sulphur 151.318 Property Used in Manufacturing 151.3181 Divergent Use of Property Used in Manufacturing 151.3185 Property Used in the Production of Motion Picture, Video, or Audio Recordings and Broadcasts 151.3186 Property Used in Cable Television, Internet Access, or Telecommunications Services 151.319 Newspapers and Property Used in Newspaper Publication 151.320 Magazines 151.321 University and College Student Organizations 151.322 Containers 151.323 Certain Telecommunications Services 151.324 Equipment Used Elsewhere for Mineral Exploration or Production 151.326 Clothing and Footwear for Limited Period 151.327 School Supplies and School Backpacks Before Start of School 151.328 Aircraft 151.329 Certain Ships and Ship Equipment 151.3291 Boats and Boat Motors 151.330 Interstate Shipments, Common Carriers, and Services Across State Lines 151.331 Rolling Stock; Train Fuel and Supplies 151.332 Certain Sales by Senior Citizen Organizations 151.333 Energy-Efficient Products 151.3335 Water-Efficient Products 151.334 Components of Tangible Personal Property Used in Connection with Sequestration of Carbon Dioxide 151.336 Certain Coins and Precious Metals 151.337 Sales by or to Indian Tribes 151.338 Environment and Conservation Services 151.339 Preexisting Contracts and Bids 151.340 Official State Coin 151.341 Items Sold to or Used by Development Corporations 151.3415 Items Sold to or Used to Construct, Maintain, Expand, Improve, Equip, or Renovate Media Production Facilities at Media Production Locations; Report 151.342 Agribusiness Items 151.343 Animals Sold by Nonprofit Animal Shelters or Nonprofit Animal Welfare Organizations 151.344 Post Exchanges on State Military Property 151.346 Intercorporate Services 151.347 Certain Lawn and Yard Service 151.348 Cooperative Research and Development Ventures 151.350 Labor to Restore Certain Property 151.3501 Labor to Restore, Repair, or Remodel Historic Sites 151.3503 Services by Employees 151.351 Information Services and Data Processing Services 151.353 Court Reporting Services 151.354 Services by Employees of Property Management Companies 151.355 Water-Related Exemptions 151.356 Offshore Spill Response Containment Property 151.3565 Emergency Preparation Supplies for Limited Period 151.359 Property Used in Certain Data Centers; Temporary Exemption 151.3595 Property Used in Certain Large Data Center Projects; Temporary Exemption

Subchapter I. Reports, Payments, and Methods of Reporting

151.401 Tax Due Dates 151.402 Tax Report Dates 151.403 Who Must File a Report 151.405 Other Due Dates Set by Comptroller 151.406 Contents and Form of Report 151.407 Special Use Tax Reports 151.408 Accounting Basis for Reports 151.409 Reports and Payments: Where Made 151.410 Method of Reporting Sales Tax: General Rule 151.411 Method of Reporting: Sellers Having Sales Below Taxable Amount 151.412 Optional Method of Reporting: Percentage of Sales 151.413 Optional Method of Reporting: Small Grocers 151.414 "retail Grocer" Defined 151.415 Assessment of Penalties and Interest Against Seller Using Optional Method of Reporting 151.416 Commingled Receipts and Tax 151.417 Direct Payment of Tax by Purchaser 151.4171 Optional Reporting Method: Percentage-Based 151.418 Issuance of Direct Payment Permit 151.419 Application for Direct Payment Permits: Qualifications 151.420 Revocation of Direct Payment Permit 151.421 Voluntary Relinquishment of Direct Payment Permit 151.422 Cancellation or Termination of Direct Payment Permit: Duty of Permit Holder 151.423 Reimbursement to Taxpayer for Tax Collections 151.424 Discount for Prepayments 151.425 Forfeiture of Discount or Reimbursement 151.426 Credits and Refunds for Bad Debts, Returned Merchandise, and Repossessions 151.4261 Credit or Reimbursement in Return Transactions 151.427 Deduction for Property on Which the Tax Is Paid and Held for Resale 151.428 Interest Charged by Retailer on Amounts of Taxes Financed 151.429 Tax Refunds for Enterprise Projects 151.4291 Tax Refunds for Defense Readjustment Projects 151.4292 Tax Refund Pilot Program for Certain Persons Who Employ Apprentices 151.430 Determination of Overpaid Amounts 151.4305 Tax Refunds for Oil or Gas Severance Taxpayers 151.431 Sales and Use Tax Refund for Job Retention 151.432 Deductions of Tax on Ticket or Admission Document to Amusement Service 151.433 Deduction for Certain Taxpayers Purchasing Texas Farm-Raised Oysters 151.434 Deduction for Certain Taxpayers Participating in Oyster Shell Recycling Program

Subchapter I-1. Reports by Persons Involved in the Manufacture and Distribution of Alcoholic Beverages

151.461 Definitions 151.462 Reports by Brewers, Brewpubs, Wholesalers, and Distributors 151.463 Rules 151.464 Confidentiality 151.465 Applicability to Certain Brewers 151.466 Applicability to Certain Brewers 151.4661 Applicability to Certain Brewpubs 151.467 Suspension or Cancellation of Permit 151.468 Civil Penalty; Criminal Penalty 151.469 Action by Texas Alcoholic Beverage Commission 151.470 Audit; Inspection 151.471 Action by Attorney General; Venue; Attorney's Fees

Subchapter I-2. Reports by Manufacturers and Distributors of Certain Off-Highway Vehicles Purchased Outside This State

151.481 Definitions 151.482 Reports by Manufacturers and Distributors 151.483 Rules 151.484 Confidentiality 151.485 Civil Penalty 151.486 Action by Texas Department of Motor Vehicles 151.487 Audit; Inspection 151.488 Action by Attorney General; Venue; Attorney's Fees

Subchapter J. Tax Determinations

151.501 Determination After the Filing of a Report 151.503 Determination If No Report Filed 151.504 Determination When a Business Is Discontinued 151.505 When Determination Becomes Final 151.507 Limitations on Determination 151.508 Offsets 151.509 Petition for Redetermination 151.510 Hearing on Redetermination 151.511 Redetermination 151.512 Interest 151.514 Notices 151.515 Proceedings Against Consumer

Subchapter K. Procedures for Collection of Delinquent Taxes

151.601 Suit 151.602 Venue 151.603 Evidence: Comptroller's Certificate 151.604 Form of Action 151.605 Writs of Attachment 151.606 Service of Process 151.607 Limitation Period 151.608 Judgments 151.614 Res Judicata 151.615 Tax Suit Comity

Subchapter L. Prohibited Acts and Civil and Criminal Penalties

151.701 Use of Stamps or Tokens Prohibited 151.703 Failure to Report or Pay Tax 151.7032 Failure to Pay Taxes Collected; Criminal Penalty and Aggregation of Amounts Involved 151.704 Sales Tax Absorption; Criminal Penalty 151.705 Collection of Use Tax; Criminal Penalty 151.707 Resale or Exemption Certificate; Criminal Penalty 151.7075 Failure to Produce Certain Records After Using Resale Certificate; Criminal Penalty 151.708 Selling Without Permit; Criminal Penalty 151.709 Failure to Furnish Report; Criminal Penalty 151.7101 Election of Offenses 151.7102 False Entry or Failure to Enter in Records 151.7103 Failure to Produce for Inspection or Allow Inspection of Records 151.711 Limitations on Prosecutions 151.712 Civil Penalty for Persons Certifying Exports 151.713 Furnishing False Information to Customs Broker; Civil Penalty 151.714 Venue for Criminal Prosecution

Subchapter M. Disposition of Proceeds

151.801 Disposition of Proceeds