If a taxpayer sells, factors, or assigns to a third party his right to receive all payments due on an installment sale, the tax is due on all remaining payments at the time the receivable is sold, factored, or assigned. No reduction in amount of tax to be paid is allowed if the retailer sells the account at a discount. This section includes revisions through May 1999 Certain insurance services are taxable when performed on behalf of insurance carriers, insured customers, policy holders, or others relating to a policy of insurance. The law applies to any persons performing taxable insurance services regardless of the provider's profession. Texas corporation has its New Mexico insurance carrier estimate the storm damage on its office building in Amarillo.
Texas tax is due on the charge for the damage appraisal.
If the office building is in Denver, Colorado, no Texas tax would be due because the two-part criteria has not been met. Unrelated Services Unrelated services are services that are not taxable under Chapter 151, are commonly provided on a stand alone basis, and are distinct and identifiable. If the seller separately states the taxable service, then only that portion is taxable. In cases where the charge for the taxable portion of the service is not separately stated at the time of the transaction, either the service provider or the purchaser may establish, through documentary evidence, the taxable percentage of the total charge. The seller's books must support the apportionment between taxable and nontaxable activities based on the cost of providing the service or comparing it to the normal industry charge for each service if provided alone.