reglab/statecodes huggingface dataset:
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter D. Imposition and Collection of Use Tax › Section 151.105. Importation for Storage, Use, or Consumption Presumed

Sec. 151.105.  IMPORTATION FOR STORAGE, USE, OR CONSUMPTION PRESUMED.  (a)  Tangible personal property that is shipped or brought into this state by a purchaser is presumed, in the absence of evidence to the contrary, to have been purchased from a retailer for storage, use, or consumption in this state.
(b)  A taxable service used in this state is presumed, in the absence of evidence to the contrary, to have been purchased from a retailer for use in this state.
Acts 1981, 67th Leg., p. 1552, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter D. Imposition and Collection of Use Tax › Section 151.106. Registration of Retailers

Sec. 151.106.  REGISTRATION OF RETAILERS.  (a)  A retailer who sells a taxable item for storage, use, or consumption in this state shall register with the comptroller.
(b)  The registration must include:
(1)  the name and address of each agent of the retailer operating in the state;
(2)  the location of all distribution or sales houses or offices or other places of business in the state;  and
(3)  other information that the comptroller requires.
(c)  A retailer required to register under this section must comply with Subchapter G of this chapter.
Acts 1981, 67th Leg., p. 1553, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter D. Imposition and Collection of Use Tax › Section 151.108. Internet Hosting

Sec. 151.108.  INTERNET HOSTING. (a) In this section, "Internet hosting" means providing to an unrelated user access over the Internet to computer services using property that is owned or leased and managed by the provider and on which the user may store or process the user's own data or use software that is owned, licensed, or leased by the user or provider. The term does not include telecommunications services.
(b)  A person whose only activity in this state is conducted as a user of Internet hosting is not engaged in business in this state.
(c)  A person providing Internet hosting is not required to:
(1)  examine a user's data to determine the applicability of this chapter to a user;
(2)  report to the comptroller about a user's activities; or
(3)  advise a user as to the applicability of this chapter.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1144 (H.B. 1841), Sec. 1, eff. June 17, 2011.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter E. Resale and Exemption Certificates › Section 151.151. Resale Certificate

Sec. 151.151.  RESALE CERTIFICATE.  A purchaser may give a resale certificate for the acquisition of a taxable item if the purchaser intends to sell, lease, or rent it in the regular course of business or transfer it as an integral part of a taxable service performed in the regular course of business.
Acts 1981, 67th Leg., p. 1553, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 1, pt. 4, Sec. 20.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter E. Resale and Exemption Certificates › Section 151.152. Resale Certificate: Form

Sec. 151.152.  RESALE CERTIFICATE:  FORM.  (a)  A resale certificate must be substantially in the form prescribed by the comptroller.
(b)  A resale certificate must:
(1)  be signed by the purchaser or contain an electronic form of the purchaser's signature authorized by the comptroller and contain the purchaser's name and address;
(2)  state the purchaser's tax permit number or that the purchaser's application for a tax permit is pending before the comptroller;  and
(3)  contain a description of the tangible personal property sold, leased, or rented by the purchaser in the regular course of business or transferred as an integral part of a taxable service performed in the regular course of business.
(c)  A resale certificate from a person engaged in business in the United Mexican States reselling the taxable item in the United Mexican States, in addition to the information required in Subsection (b), must provide:
(1)  the purchaser's United Mexican States federal identification number;  and
(2)  any other information required by the comptroller.
Acts 1981, 67th Leg., p. 1553, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1995, 74th Leg., ch. 351, Sec. 2, eff. Sept. 1, 1995;  Acts 2003, 78th Leg., ch. 1310, Sec. 101, eff. Oct. 1, 2003.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter E. Resale and Exemption Certificates › Section 151.153. Resale Certificate: Commingled Fungible Goods

Sec. 151.153.  RESALE CERTIFICATE:  COMMINGLED FUNGIBLE GOODS.  If a purchaser gives a resale certificate with respect to the purchase of fungible goods and then commingles the goods with other similar fungible goods for which a resale certificate was not given, sales from the mass of commingled fungible goods are deemed to be sales of goods covered by the resale certificate until the quantity of goods covered by the certificate equals the quantity of goods sold.
Acts 1981, 67th Leg., p. 1554, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter E. Resale and Exemption Certificates › Section 151.154. Resale Certificate: Liability of Purchaser

Sec. 151.154.  RESALE CERTIFICATE:  LIABILITY OF PURCHASER.  (a)  If a purchaser who gives a resale certificate makes any use of the taxable item other than retention, demonstration, or display while holding it for sale, lease, or rental in the regular course of business or for transfer as an integral part of a taxable service in the regular course of business, the purchaser shall be liable for payment of the sales tax on the value of the taxable item for any period during which the taxable item is used other than for retention, demonstration, or display.
(b)  The value of an item of tangible personal property is the fair market rental value of the tangible personal property, which is the amount that a purchaser would pay on the open market to rent or lease the tangible personal property for his use.  The value of a taxable service is the fair market value of the taxable service, which is the amount that a purchaser would pay on the open market to obtain the service for the use of the purchaser.
(c)  If an item of tangible personal property has no fair market rental value or if a taxable service has no fair market value, the original purchase price shall be the measure of the tax.
(d)  At any time, the person making the divergent use may cease paying tax on the fair market rental value or fair market value and may pay sales tax on the original purchase price without credit for taxes previously paid.
(e)  A purchaser of a taxable item who gives a resale certificate is not liable for the tax imposed by this chapter if he donates the item to an organization exempted under Section 151.309 or 151.310(a)(1) or (2) of this code;  except that any use by the purchaser of the taxable item other than retention, demonstration, or display shall be subject to taxes imposed by this section.
(f)  A purchaser who issues a resale certificate for the purchase of a taxable item is liable for payment of the sales tax on the purchase price of the taxable item if the purchaser uses the item as a part of the excludable consideration on the purchase of another taxable item.
Acts 1981, 67th Leg., p. 1554, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1995, 74th Leg., ch. 1000, Sec. 8, eff. Oct. 1, 1995;  Acts 1997, 75th Leg., ch. 1040, Sec. 19, eff. Sept. 1, 1997.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter E. Resale and Exemption Certificates › Section 151.155. Exemption Certificate

Sec. 151.155.  EXEMPTION CERTIFICATE.  (a)  Except as provided by Section 151.3181 for property used in manufacturing, if a purchaser certifies in writing to a seller that a taxable item sold, leased, or rented to the purchaser will be used in a manner or for a purpose that qualifies the sale of the item for an exemption from the taxes imposed by this chapter, and if the purchaser then uses the item in some other manner or for some other purpose, the purchaser is liable for the payment of the sales tax on the value of the taxable item for any period during which the item is used in the divergent manner or for the divergent purpose.
(b)  The value of an item of tangible personal property is the fair market rental value of tangible personal property, which is the amount that a purchaser would pay on the open market to rent or lease the property for his use.  The value of a taxable service is the fair market value of the taxable service, which is the amount that a purchaser would pay on the open market to obtain the service for the use of the purchaser.
(c)  If an item of tangible personal property has no fair market rental value or if a taxable service has no fair market value, the original purchase price shall be the measure of tax.
(d)  At any time, the person making the divergent use may cease paying tax on the fair market rental value or fair market value and may pay sales tax on the original purchase price without credit for taxes previously paid.
(e)  A purchaser of a taxable item who gives an exemption certificate is not liable for the tax imposed by this chapter if he donates the taxable item to an organization exempted under Section 151.309 or 151.310(a)(1) or (2) of this code;  except that any use by the purchaser of the taxable item other than retention, demonstration, or display shall be subject to taxes imposed by this section.
Acts 1981, 67th Leg., p. 1554, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1995, 74th Leg., ch. 1000, Sec. 9, eff. Oct. 1, 1995;  Acts 2001, 77th Leg., ch. 1263, Sec. 15, eff. Oct. 1, 2001.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter E. Resale and Exemption Certificates › Section 151.156. Tax-Free Purchases of Certain Exported Items

Sec. 151.156.  TAX-FREE PURCHASES OF CERTAIN EXPORTED ITEMS.  (a)  The comptroller by rule may establish procedures by which a maquiladora enterprise or its agent may make tax-free purchases in this state of tangible personal property that is exempted from the taxes imposed by this chapter because the property is immediately exported beyond the territorial limits of the United States.
(b)  The comptroller may issue a permit to an enterprise that the comptroller authorizes to make tax-free purchases under this section and the comptroller's rules and may allow an authorized maquiladora enterprise to make a tax-free purchase by executing an exemption certificate or in any other manner the comptroller provides.
(c)  To qualify to make tax-free purchases under this section, a maquiladora enterprise must apply to the comptroller and comply with any requirements the comptroller requires to administer this section and to prevent the evasion of state and local sales and use taxes.  The comptroller may require a maquiladora enterprise to post a bond or other security in the amount the comptroller considers reasonable to ensure the payment of state and local sales and use taxes.  The comptroller shall require a maquiladora enterprise authorized to make tax-free purchases under this section to make available to the comptroller on request its books and records relating to its maquiladora status, operations, and purchases.
(d)  The comptroller shall require a maquiladora enterprise authorized to make tax-free purchases under this section to make a report of its tax-free purchases at least quarterly and may require the enterprise to include in a report any other information the comptroller requires.
(e)  The comptroller may suspend or revoke the permit or other authorization of an enterprise to make tax-free purchases under this section without notice for good cause.  In that event, the comptroller shall notify the enterprise as soon as practicable of the comptroller's action and shall provide the enterprise with an opportunity for a hearing on whether the enterprise qualifies to make tax-free purchases under this section.
(f)  In this section, "maquiladora enterprise" means a business entity chartered by the government of the United Mexican States and authorized by that government to make duty-free imports of raw materials, component parts, or other property into Mexico to be used in manufacturing, processing, or assembling items by the business entity in Mexico primarily for export from Mexico.
Added by Acts 1989, 71st Leg., ch. 903, Sec. 2, eff. June 14, 1989.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter E. Resale and Exemption Certificates › Section 151.158. Export Stamps

Sec. 151.158.  EXPORT STAMPS.  (a)  The comptroller shall have printed or manufactured stamps in the design, size, and quantity the comptroller determines is necessary for the purpose of this section.
(b)  The comptroller may designate the method of identification for the stamps.
(c)  The comptroller shall require that the stamps be manufactured so that a stamp may be easily and securely attached to export documentation.
(d)  The comptroller shall change the design of the stamps at least once each calendar quarter, or more frequently if the comptroller determines it is necessary for the enforcement of this section and the comptroller's rules.
(e)  The comptroller may provide stamps only to a customs broker licensed under Section 151.157.
(f)  A stamp is invalid if transferred to a person other than the customs broker to whom the comptroller issued the stamp, to an authorized employee of that customs broker, or to an authorized independent contractor.
(g)  The comptroller shall charge $2.10 for each stamp.  The comptroller shall use:
(1)  $1.60 of the money from the sale of the stamps only for costs related to producing the stamps, including costs of materials, labor, and overhead; and
(2)  the remaining 50 cents only for enforcement of the laws relating to customs brokers under this title.
(g-1)  Any unspent money shall be deposited to the credit of the general revenue fund.
(g-2)  Customs brokers who return unused stamps to the comptroller's office on a quarterly basis shall get credit towards the purchase of new stamps.
(h)  The comptroller may require stamps to be purchased in minimum quantities if the comptroller considers it necessary for the efficient administration of this section.
Added by Acts 1993, 73rd Leg., ch. 955, Sec. 1, eff. June 19, 1993.  Amended by Acts 2003, 78th Leg., ch. 1001, Sec. 3, eff. Jan. 1, 2004.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 904 (S.B. 776), Sec. 3, eff. September 1, 2011.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter E. Resale and Exemption Certificates › Section 151.159. Refunds; Identification Cards

Sec. 151.159.  REFUNDS;  IDENTIFICATION CARDS.  (a)  The comptroller in writing may authorize a customs broker to refund taxes collected under this chapter at export locations specified by the comptroller.
(b)  The comptroller may issue an export identification card to a wholesaler or retailer.  The card must contain the picture of the person to whom the card is issued.  The comptroller may issue the card only if the wholesaler or retailer shows by clear and convincing evidence that the wholesaler or retailer is a citizen and resident of a foreign country and that any tangible personal property purchased in this state by the wholesaler or retailer is for export purposes only and is to be used or consumed outside the territorial limits of the United States.  A wholesaler or retailer issued an export identification card may use the card only to facilitate the preparation of documentation by a customs broker under Section 151.307(b).  The comptroller may require a wholesaler or retailer applying for an export identification card to submit any information in any form the comptroller determines is necessary and to pay a fee in an amount the comptroller determines is necessary to pay for the cost of issuing the card.
Added by Acts 1993, 73rd Leg., ch. 955, Sec. 1, eff. June 19, 1993.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter E. Resale and Exemption Certificates › Section 151.160. Deposits

Sec. 151.160.  DEPOSITS.  Penalties collected by the comptroller shall be deposited into general revenue.  Fees and charges collected by the comptroller under this Act shall be considered reimbursements for expenses of administration and shall be available for use by the comptroller in accordance with provisions in the General Appropriations Act appropriating such revenues for use by agencies.
Added by Acts 1993, 73rd Leg., ch. 955, Sec. 1, eff. June 19, 1993.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter F. Sales Tax Permits › Section 151.201. Sales Tax Permits

Sec. 151.201.  SALES TAX PERMITS.  (a)  The comptroller shall issue to an applicant who qualifies under Section 151.202 of this code and under Subchapter G  of this chapter a separate permit for each place of business in this state.
(b)  The holder of a permit shall display it conspicuously in the place of business to which it applies.
(c)  A permit is valid only for the person and the place of business to which it applies and is nonassignable.
(d)  Repealed by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 14.12(1).
Acts 1981, 67th Leg., p. 1555, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 1, pt. 5, Sec. 1;  Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 14.04, 14.12(1).
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter F. Sales Tax Permits › Section 151.202. Application for Permit

Sec. 151.202.  APPLICATION FOR PERMIT.  (a)  A person desiring to be a seller in this state shall file with the comptroller an application for a permit for each place of business.
(b)  An application must:
(1)  be on a form prescribed by the comptroller;
(2)  state the name under which the applicant transacts or intends to transact business;
(3)  give the address of the place of business to which the permit is to apply;
(4)  contain any other information required by the comptroller;  and
(5)  be signed by the owner if the owner is an individual, a member or partner if the owner is an association or partnership, or an executive officer or other person authorized by the corporation to sign the application if the owner is a corporation.
(c)  An application that is filed electronically complies with the signature requirement under Subsection (b).
Acts 1981, 67th Leg., p. 1555, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 2003, 78th Leg., ch. 1310, Sec. 102, eff. July 1, 2004.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 1266 (H.B. 3319), Sec. 15(3), eff. September 1, 2007.
Acts 2015, 84th Leg., R.S., Ch. 307 (S.B. 853), Sec. 1, eff. June 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter F. Sales Tax Permits › Section 151.2021. Cancellation of Inactive Permit

Sec. 151.2021.  CANCELLATION OF INACTIVE PERMIT.  (a)  The comptroller may cancel a sales tax permit under this section if the permit holder has reported no business activity for 12 consecutive months.  No business activity means zero total sales, zero taxable sales, and zero taxable purchases.
(b)  To cancel a permit, the comptroller shall send a notice of the comptroller's intention to cancel the permit to the permit holder at the address shown on the permit.  The notice must specify the date on which the comptroller intends to cancel the permit.  That date must be at least 30 days after the date the comptroller sends the notice to the permit holder.  The comptroller may not cancel the permit before the date specified in the notice.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 1, pt. 5, Sec. 2.  Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 14.05.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter F. Sales Tax Permits › Section 151.203. Suspension and Revocation of Permit

Sec. 151.203.  SUSPENSION AND REVOCATION OF PERMIT.  (a)  If a person fails to comply with a provision of this chapter or with a rule of the comptroller adopted under this chapter and relating to the sales tax, the comptroller, after a hearing, may revoke or suspend one or more permits issued to the person.
(b)  A person whose permit the comptroller proposes to revoke or suspend is entitled to 20 days' written notice of the time and place of the hearing on the revocation or suspension.  At the hearing the person must show cause why each permit should not be suspended or revoked.
(c)  The comptroller shall give written notice of the revocation or suspension of a permit to the holder of the permit.
(d)  Notices under this section may be served on the permit holder personally or by electronic means or may be mailed to the permittee's address as shown in the records of the comptroller.
(e)  Service by electronic means is complete when the comptroller transmits the notice using the contact information provided to the comptroller by the permit holder as shown in the records of the comptroller.
(f)  Service by mail is complete when the notice is deposited by the comptroller in a United States Postal Service post office.
Acts 1981, 67th Leg., p. 1555, ch. 389, Sec. 1, eff. Jan. 1, 1982.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 1040 (S.B. 61), Sec. 2, eff. September 1, 2023.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter F. Sales Tax Permits › Section 151.204. Reissued or New Permit After Revocation or Suspension

Sec. 151.204.  REISSUED OR NEW PERMIT AFTER REVOCATION OR SUSPENSION.  (a)  A new permit may not be issued to a former holder of a revoked permit unless the comptroller is satisfied that the person will comply with the provisions of this chapter and the rules of the comptroller relating to the sales tax.
(b)  The comptroller may prescribe the terms under which a suspended permit may be reissued.
(c)  Repealed by Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 14.12(2).
Acts 1981, 67th Leg., p. 1555, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 1, pt. 5, Sec. 3;  Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 14.12(2).
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter F. Sales Tax Permits › Section 151.205. Appeals

Sec. 151.205.  APPEALS.  A taxpayer may appeal the revocation or suspension of a tax permit in the same manner that appeals are made from a final deficiency determination.
Acts 1981, 67th Leg., p. 1556, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter G. Seller's and Retailer's Security › Section 151.251. Security Required

Sec. 151.251.  SECURITY REQUIRED.  (a)  An applicant for a sales tax permit or for registration as a retailer under Section 151.106 of this code must file with the comptroller adequate security for the payment of the taxes imposed by this chapter.
(b)  If the holder of a sales tax permit or a retailer registered under Section 151.106 of this code who is exempted under Section 151.254 of this code from filing security under this subchapter is determined by the comptroller to be delinquent in the payment of the taxes imposed by this chapter, the comptroller shall require the holder or retailer to file with the comptroller adequate security for the payment of the taxes imposed by this chapter.
(c)  For the purposes of Subsection (b) of this section, a holder of a permit or a retailer is delinquent in the payment of the taxes imposed by this chapter if the holder or retailer fails to file all reports due or to pay any determination before the day the determination could be paid without additional penalty.
(d)  If the comptroller determines that it is necessary to ensure compliance with this chapter, the comptroller may require security from a person as a condition to retaining a permit under this chapter.
Acts 1981, 67th Leg., p. 1556, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter G. Seller's and Retailer's Security › Section 151.252. Temporary Permit

Sec. 151.252.  TEMPORARY PERMIT.  (a)  The comptroller may issue a temporary sales tax permit or retailer's registration to an applicant for a period determined by the comptroller in order to arrange for and provide the security required by this subchapter.
(b)  A temporary permit or registration expires without further notice on the expiration date shown on the temporary permit or registration.
Acts 1981, 67th Leg., p. 1556, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter G. Seller's and Retailer's Security › Section 151.253. Security: Requirements

Sec. 151.253.  SECURITY:  REQUIREMENTS.  (a)  The security required by this subchapter may be a cash bond, a bond from a surety company chartered or authorized to do business in this state, a certificate of deposit, a certificate of savings or U.S. Treasury bond, an assignment of negotiable stocks or bonds that has been approved by the comptroller, or any other security deemed by the comptroller to be sufficient for the payment of taxes imposed by this chapter.
(b)  The comptroller shall fix the amount of security required in each case, taking into consideration the amount of tax that has or is expected to become due from the person under this chapter and all other applicable local sales and use taxes and the necessity to protect the state against the failure to pay these taxes.  The maximum amount of security that may be required is the greater of $100,000 or four times the amount of the person's average monthly tax liability.
(c)  A bond qualifying under this subchapter must be a continuing instrument and a new and separate obligation for the penal sum named in the bond for each calendar year or portion of a calendar year while the bond is in effect.  The bond must remain in effect until the surety or sureties are released and discharged.
Acts 1981, 67th Leg., p. 1556, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1983, 68th Leg., p. 1365, ch. 281, Sec. 7, eff. Oct. 1, 1983;  Acts 2001, 77th Leg., ch. 442, Sec. 11, eff. Sept. 1, 2001.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter G. Seller's and Retailer's Security › Section 151.254. Exemption From Filing Security

Sec. 151.254.  EXEMPTION FROM FILING SECURITY.  (a)  A person who has filed security under this subchapter is exempted from the security requirements of this subchapter and is entitled, on request, to have the comptroller return, refund, or release the security if in the judgment of the comptroller the person has for two consecutive years continuously complied with the conditions of the security filed under this subchapter.
(b)  A person who received a sales tax permit or was registered as a retailer before January 1, 1974, and has not been determined to be delinquent as provided by Section 151.251(b) of this code or been required to file security under this subchapter is exempted from filing security.
Acts 1981, 67th Leg., p. 1557, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter G. Seller's and Retailer's Security › Section 151.255. Notice

Sec. 151.255.  NOTICE.  (a)  If the comptroller determines that the holder of a permit or a registered retailer is required to file security under Section 151.251(b) of this code, the comptroller shall notify the person in writing that security is required to be filed and state the amount of security set by the comptroller.
(b)  Notice under this subsection shall be mailed to the permit holder or registered retailer at the address shown in the comptroller's records.
Acts 1981, 67th Leg., p. 1557, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter G. Seller's and Retailer's Security › Section 151.256. Failure to Provide Security: Loss of Permit

Sec. 151.256.  FAILURE TO PROVIDE SECURITY:  LOSS OF PERMIT.  If a person fails to provide security under this subchapter as provided by Section 151.251(b) of this code, the comptroller shall revoke or suspend the permit or retailer's registration of the person as provided by Section 151.203 of this code.
Acts 1981, 67th Leg., p. 1557, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter G. Seller's and Retailer's Security › Section 151.257. Forfeiture of Security: Determination

Sec. 151.257.  FORFEITURE OF SECURITY:  DETERMINATION.  (a)  If a person who has filed a security under this subchapter fails to pay the taxes imposed by this chapter or by a city under the Local Sales and Use Tax Act  or fails to file a tax return required by this chapter or under the Local Sales and Use Tax Act, the comptroller shall issue a deficiency or jeopardy determination containing a demand for the amount of taxes, penalties, and interest due.  The determination shall state that if payment is not made on or before the last day that the deficiency may be paid without incurring further penalty, the security or a part of the security may be forfeited.
(b)  If the security filed by the person is a surety bond, the comptroller shall send a copy of the determination to each surety on the bond and shall demand payment from both the person filing the bond and each surety.  A surety's obligation under the bond is not affected by whether the surety has a record of the receipt of a copy of the comptroller's determination notice or payment demand.
Acts 1981, 67th Leg., p. 1557, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 2001, 77th Leg., ch. 1263, Sec. 16, eff. Sept. 1, 2001.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter G. Seller's and Retailer's Security › Section 151.258. Sale of Security

Sec. 151.258.  SALE OF SECURITY.  (a)  If necessary to recover an amount of tax, penalty, or interest, the comptroller may sell security deposited under this subchapter.  A sale shall be public and notice of the sale may be given personally or by mail to the person who deposited the security.
(b)  If the notice is given by mail, the comptroller may send it to the last known address appearing in the records of the comptroller.
(c)  Subject to the requirement of additional security required by Section 151.260 of this code, the comptroller shall return to the depositor any security remaining after the sale and after recovering the amount of tax, penalty, and interest due from the depositor.
Acts 1981, 67th Leg., p. 1557, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter G. Seller's and Retailer's Security › Section 151.259. Security Insufficient to Pay Tax

Sec. 151.259.  SECURITY INSUFFICIENT TO PAY TAX.  (a)  If payment of the tax due is not made and the forfeiture of the security does not satisfy the delinquency, the comptroller shall suspend or revoke the permit or registration of the taxpayer as provided by Section 151.203 of this code.
(b)  If the permit or registration is suspended, the comptroller shall certify to the attorney general the amount of taxes, penalties, and interest delinquent under this chapter.
(c)  A permit or registration revoked or suspended under this section may not be reinstated until all taxes, penalties, and interest have been paid and another security is filed with the comptroller.  The comptroller shall set the amount of the security subject only to the maximum amounts provided by Section 151.253(b) of this code.
Acts 1981, 67th Leg., p. 1558, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter G. Seller's and Retailer's Security › Section 151.260. Security Sufficient to Pay Tax

Sec. 151.260.  SECURITY SUFFICIENT TO PAY TAX.  (a)  If the security is forfeited in whole or in part and no delinquency remains, the comptroller shall demand from the person new or additional security to be filed before the expiration of 10 days after the date the notice of the demand is given.
(b)  The amount of the new or additional security shall be set by the comptroller subject only to the maximum amounts as provided by Section 151.253(b) of this code.
(c)  If the person fails to file the amount of the new or additional security before the expiration of the 10-day period, the comptroller shall suspend or revoke the permit or registration of the taxpayer as provided by Section 151.203 of this code and certify the name and address of the person to the attorney general.
Acts 1981, 67th Leg., p. 1558, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter G. Seller's and Retailer's Security › Section 151.261. Notice to Cities

Sec. 151.261.  NOTICE TO CITIES.  If a permit or registration is revoked or suspended under this subchapter, the comptroller shall notify the applicable city of any delinquency under the Local Sales and Use Tax Act.
Acts 1981, 67th Leg., p. 1558, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter G. Seller's and Retailer's Security › Section 151.262. Suits by Attorney General

Sec. 151.262.  SUITS BY ATTORNEY GENERAL.  (a)  The attorney general may file suit for an injunction prohibiting a person from engaging in the business of selling taxable items subject to the taxes imposed by this chapter if the person engages in that business and does not have a valid permit or retailer's registration issued to him by the comptroller for each place of business.
(b)  The attorney general shall bring suit against a person whose name is certified to him under Section 151.259(b) of this code, the person's sureties, or both, to collect the amount of delinquent tax due.
(c)  The attorney general may bring suit on a surety bond against the sureties without making the person who is the principal obligor a party to the suit.
(d)  Venue for a suit under this section is in Travis County.
Acts 1981, 67th Leg., p. 1558, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.301. "Exempted From the Taxes Imposed by This Chapter"

Sec. 151.301.  "EXEMPTED FROM THE TAXES IMPOSED BY THIS CHAPTER".  If a taxable item is exempted from the taxes imposed by this chapter, the sale, storage, use or other consumption of the item is not subject to the sales tax imposed by Section 151.051 of this code or the use tax imposed by Section 151.101 of this code if the item meets the qualifications for exemption as provided in this subchapter;  and when an item is exempted from the taxes imposed by this chapter the receipts from its sale are excluded from the computation of the taxes.
Acts 1981, 67th Leg., p. 1559, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.302. Sales for Resale

Sec. 151.302.  SALES FOR RESALE.  (a)  The sale for resale of a taxable item is exempted from the taxes imposed by this chapter.
(b)  Tangible personal property used to perform a taxable service is not considered resold unless the care, custody, and control of the tangible personal property is transferred to the purchaser of the service.
(c)  Internal or external wrapping, packing, and packaging supplies used by a person in wrapping, packing, or packaging tangible personal property or in the performance of a service for the purpose of furthering the sale of the tangible personal property or the service may not be purchased by the person for resale.
(d)  In this section, "wrapping," "packing," and "packaging supplies" include:
(1)  wrapping paper, wrapping twine, bags, cartons, crates, crating material, tape, rope, rubber bands, labels, staples, glue, and mailing tubes;  and
(2)  excelsior, straw, cardboard fillers, separators, shredded paper, ice, dry ice, cotton batting, shirt boards, hay laths, and property used inside a package to shape, form, stabilize, preserve, or protect the contents.
Acts 1981, 67th Leg., p. 1559, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1985, 69th Leg., ch. 206, Sec. 7, eff. Oct. 1, 1985;  Acts 1991, 72nd Leg., 1st C.S., ch. 5, Sec. 14.06.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3021. Packaging Supplies and Wrapping

Sec. 151.3021.  PACKAGING SUPPLIES AND WRAPPING.  (a)  In this section:
(1)  "Laundry or dry cleaner" does not include coin- operated or other self-service garment cleaning facilities.
(2)  "Wrapping, packing, and packaging supplies" means hangers, safety pins, pins, inventory tags, staples, boxes, paper wrappers, and plastic bags.
(b)  Internal and external wrapping, packing, and packaging supplies are exempted from the taxes imposed by this chapter if sold to a person who is a laundry or dry cleaner for use in wrapping, packing, or packaging an item that has been pressed and dry cleaned or laundered by the person operating as a laundry or dry cleaner in the regular course of business.
Added by Acts 2001, 77th Leg., ch. 1263, Sec. 17, eff. Oct. 1, 2001.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.303. Previously Taxed Items: Use Tax Exemption or Credit

Sec. 151.303.  PREVIOUSLY TAXED ITEMS:  USE TAX EXEMPTION OR CREDIT.  (a)  The storage, use, or other consumption of a taxable item the sale of which is subject to the sales tax is exempted from the use tax imposed by Subchapter D of this chapter.
(b)  The storage, use, or other consumption of a taxable item on which the person storing, using, or consuming the item has paid a use tax is exempted from the use tax imposed by Subchapter D of this chapter.
(c)  A taxpayer is entitled to a credit against the use tax imposed by Subchapter D of this chapter on a taxable item in an amount equal to the amount of any similar tax paid by the taxpayer in another state on the sale, purchase, or use of the taxable item if the state in which the tax was paid provides a similar credit for a taxpayer of this state.
Acts 1981, 67th Leg., p. 1559, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.305. Coin-Operated Machine Sales

Sec. 151.305.  COIN-OPERATED MACHINE SALES.  (a)  The following tangible personal property sold through a coin-operated bulk vending machine for a total consideration of 50 cents or less is exempt from the taxes imposed by this chapter:
(1)  food or candy, other than beverages;
(2)  chewing gum;  or
(3)  toys and other items designed primarily to be used or played with by children.
(b)  In this section, "bulk vending machine" means a vending machine that contains unsorted items and that dispenses at random an item or approximately equal quantities of items to the customer without selection of a particular item or type of item by the customer.
Added by Acts 1989, 71st Leg., ch. 1158, Sec. 1, eff. Oct. 1, 1989.  Amended by Acts 1999, 76th Leg., ch. 898, Sec. 1, eff. July 1, 1999.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3051. Sales Through Certain Vending Machines

Sec. 151.3051.  SALES THROUGH CERTAIN VENDING MACHINES.  (a)  The sale of tangible personal property through a vending machine is exempt from the taxes imposed by this chapter if:
(1)  the sale is made by a nonprofit organization that is exempt from federal income taxation under Section 501(a), Internal Revenue Code of 1986, by being listed as an exempt organization in Section 501(c)(3) of that code;
(2)  the machine is owned by the nonprofit organization; and
(3)  the machine is stocked and maintained by individuals with special needs as part of an independent life skills and education program operated by the nonprofit organization.
(b)  A nonprofit organization that makes a sale exempt from taxation under this section must maintain records demonstrating that the sale is eligible for the exemption.
Added by Acts 2015, 84th Leg., R.S., Ch. 772 (H.B. 2313), Sec. 1, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.306. Transfers of Common Interests in Property

Sec. 151.306.  TRANSFERS OF COMMON INTERESTS IN PROPERTY.  If an interest in tangible personal property is sold, under the terms of a good faith, bona fide contractual relationship, to another person who either before or after the sale owned or owns a joint or undivided interest in the property with the seller, and if the taxes imposed by this chapter have previously been paid on the tangible personal property, the tangible personal property is exempted from the taxes imposed by this chapter.
Acts 1981, 67th Leg., p. 1560, ch. 389, Sec. 1, eff. Jan. 1, 1982.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.3071. Installation of Certain Equipment for Export

Sec. 151.3071.  INSTALLATION OF CERTAIN EQUIPMENT FOR EXPORT.  Electronic audio equipment that is exempted from the taxes imposed by this chapter because it is purchased for use beyond the territorial limits of the United States does not become subject to the taxes imposed by this chapter solely because the equipment is installed in this state.
Added by Acts 1993, 73rd Leg., ch. 955, Sec. 3, eff. June 19, 1993.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.308. Items Taxed by Other Law

Sec. 151.308.  ITEMS TAXED BY OTHER LAW.  (a)  The following are exempted from the taxes imposed by this chapter:
(1)  oil as taxed by Chapter 202;
(2)  motor fuels and special fuels as defined, taxed, or exempted by Chapter 162;
(3)  cement as taxed by Chapter 181;
(4)  motor vehicles, trailers, and semitrailers as defined, taxed, or exempted by Chapter 152, other than a mobile office or an oilfield portable unit, as those terms are defined by Section 152.001;
(5)  mixed beverages, ice, or nonalcoholic beverages and the preparation or service of these items if the receipts are taxable by Subchapter B, Chapter 183, or the items are taxable by Subchapter B-1, Chapter 183;
(6)  alcoholic beverages when sold to the holder of a private club registration permit or to the agent or employee of the holder of a private club registration permit if the holder or agent or employee is acting as the agent of the members of the club and if the beverages are to be served on the premises of the club;
(7)  oil well service as taxed by Subchapter E, Chapter 191; and
(8)  insurance premiums subject to gross premiums taxes.
(b)  Natural gas is exempted under Subsection (a)(2) only to the extent that the gas is taxed as a motor fuel under Chapter 162.
Acts 1981, 67th Leg., p. 1560, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 2, Sec. 23, eff. Oct. 2, 1984;  Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 1, pt. 4, Sec. 21;  Acts 1991, 72nd Leg., ch. 524, Sec. 1, eff. Sept. 1, 1991;  Acts 1991, 72nd Leg., ch. 705, Sec. 13, eff. Sept. 1, 1991;  Acts 1993, 73rd Leg., ch. 587, Sec. 13, eff. Oct. 1, 1993;  Acts 2001, 77th Leg., ch. 1263, Sec. 18, eff. Oct. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1227 (S.B. 1495), Sec. 6, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 566 (H.B. 3182), Sec. 1, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1403 (H.B. 3572), Sec. 1, eff. January 1, 2014.
Acts 2015, 84th Leg., R.S., Ch. 470 (S.B. 757), Sec. 7, eff. September 1, 2015.
2023 Texas Statutes › Tax Code › Title 2 - State Taxation › Subtitle E - Sales, Excise, and Use Taxes › Chapter 151 - Limited Sales, Excise, and Use Tax › Subchapter H. Exemptions › Section 151.309. Governmental Entities

Sec. 151.309.  GOVERNMENTAL ENTITIES.  A taxable item sold, leased, or rented to, or stored, used, or consumed by, any of the following governmental entities is exempted from the taxes imposed by this chapter:
(1)  the United States;
(2)  an unincorporated instrumentality of the United States;
(3)  a corporation that is an agency or instrumentality of the United States and is wholly owned by the United States or by another corporation wholly owned by the United States;
(4)  this state;
(5)  a county, city, special district, or other political subdivision of this state;  or
(6)  a state, or a governmental unit of a state that borders this state, but only to the extent that the other state or governmental unit exempts or does not impose a tax on similar sales of items to this state or a political subdivision of this state.
Acts 1981, 67th Leg., p. 1560, ch. 389, Sec. 1, eff. Jan. 1, 1982.  Amended by Acts 1993, 73rd Leg., ch. 719, Sec. 1, eff. July 1, 1993.