| TAX POLICY NEWS |
| a monthly newsletter about Texas tax policy |
Tax Policy News is a monthly online newsletter with the latest information about Texas taxes to assist the public in understanding the application of various tax-related statutes and administrative rules. It also includes pertinent information on recent additions to our State Tax Automated Research (STAR) System.
If you would like to be notified by email when the latest issue is available, you can use our online subscription service. You can also use our subscription service to receive updates to other Comptroller's office publications and news of interest to you.
Notice Regarding Previous Issues of Tax Policy News
Many previous issues of Tax Policy News are no longer provided online since they may contain information that has been superseded or conflicts with current tax law. Articles from these issues that reflect policy for various taxes are still available on our State Tax Automated Research (STAR) System.
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2012
April 2012Franchise Tax
Insurance Tax
Mixed Beverage Gross Receipts Tax
Sales Tax
Resources
March 2012
Franchise Tax
Hotel Occupancy Tax
Insurance Tax
Sales Tax
Resources
February 2012
Franchise Tax
Insurance Tax
Mixed Beverage Tax
Sales Tax
- Agriculture Exemption: A Tale of Two Taxes
- Hearings Summary and Summary of General Rule 3.2 – Offsets and the Application of Credits and Payments to Liabilities: What is the Correct Procedure?
- Sales Tax Deductions on Federal Income Tax Returns
Resources
January 2012
Cigarette Tax; Cigars and Tobacco Products Tax
Insurance Tax
Sales Tax
- Correction! 2012 Sales Tax Holiday Scheduled for Aug. 17 - Aug. 19
- There's No (Tax) Free Lunch for Employees of Exempt Organizations
- Tax-Free Sales: It's a New Calendar Year
Other News
Recently Adopted Rules
2011
November/December 2011IMPORTANT REMINDER!
Coin-Operated Amusement Machine Tax
Franchise Tax
Insurance Tax
Sales Tax
- Exemption for Labor When Repair, Maintenance or Remodeling is Mandated by Law
- Holiday Shopping Reminder: Internet Orders are Subject to Texas Sales and Use Tax
Other News
Recently Adopted Rules
Recently Proposed Rules
October 2011
Franchise Tax
Insurance Tax
Mixed Beverage Gross Receipts Tax
Sales Tax
- Firearms Sold by Out-of-State Dealers: Transfer Fees Charged by Texas Dealers
- ’Tis the Season – Holiday Goods and Services
September 2011
Coin-Operated Amusement Machine Tax
Franchise Tax
Insurance Tax
Sales Tax
- 2011 Law Changes – No Prior Contract Exemptions Authorized
- Bakery Items – Let Them Bake Cake!
- Commercial Agricultural and Timber Operations – New Registration Requirement!
- Sales by Federal Agencies and Instrumentalities – The “Buck” Does Not Stop Here
- Texas Wildfires – Sales Tax Relief for Texas Wildfire Victims
August 2011 – Legislative Update
2011 Legislative Update
- General Bills
- 9-1-1 Equalization Surcharge
- Cigarette Tax; Cigars and Tobacco Products Tax
- Franchise Tax
- Hotel Occupancy Tax
- Insurance Tax
- Mixed Beverage Gross Receipts Tax
- Motor Fuels Taxes
- Motor Vehicle Sales and Use Tax
- Petroleum Products Delivery Fee
- Sales and Use Tax – General
- Sales and Use Tax – Local Tax
- Sales and Use Tax – Local Jurisdictions Authorized
July 2011
Franchise Tax
Hotel Occupancy Tax
Insurance Tax
New Legislation
Sales Tax
- House Bill 1841 Creates a New Rule for Purchasers of Internet Hosting
- There's No (Tax-) Free Lunch for Employees of Exempt Organizations
Other News
Recently Adopted Rules
Recently Proposed Rules
June 2011
Franchise Tax
Insurance Tax
Sales Tax
- Battling Drought – Sales Tax Exemptions for Items Used to Enhance the Availability of Water
- Daily Deals
- Hearings Summary – Use Tax Was Due on a Fishing Vessel Purchased Out of State and Used for Less than One Year Before it Was Brought into Texas
May 2011
Franchise Tax
Insurance Tax
Sales Tax
Recently Proposed Rules
- Motor Fuel Tax - Rule 3.443 Diesel Fuel Tax Exemption for Water, Fuel Ethanol, Biodiesel, Renewable Diesel, and Biodiesel and Renewable Diesel Mixtures
- Crude Oil Production - Rule 3.32 Exemption of Oil Incidentally Produced in Association with the Production of Geothermal Energy
- Natural Gas - Rule 3.24 Exemption of Gas Incidentally Produced in Association with the Production of Geothermal Energy
April 2011
Franchise Tax
Hotel Occupancy Tax
Sales Tax
- Energy Sales Tax Holiday
- Court Case Summary: Scaffolding is Taxable as Rental of Tangible Personal Property; Additional Claims Not Raised in the Administrative Hearing Cannot Be Raised in Motion for Rehearing
March 2011
Franchise Tax
Insurance Tax
Mixed Beverage Gross Receipts Tax
Sales Tax
- City Environmental Fee on Plastic Bags Not Taxable
- Internet and Catalog Orders
- Sales Tax Deductions on Federal Income Tax Returns
- Taxability of Fuel Surcharges
February 2011
Coin-Operated Machines Tax
Franchise Tax
Insurance Tax
Sales Tax
Recently Adopted Rules
- State Sales and Use Tax - Section 3.346 Use Tax
- State Sales and Use Tax - Section 3.333 Security Services
January 2011
Franchise Tax
- Attention Tax Practitioners: New Electronic Filing Method for 2011
- Franchise Tax and the Retail Industry
Hotel Occupancy Tax
Insurance Tax
Sales Tax
- Hearing Summary: Cases and Holders Used in the Repackaging of Coins
- Tax-Free Sales by Qualified Nonprofit Organizations: It's a New Calendar Year
- Texas Appliance Mail-In Rebate Program - Rebate Does Not Reduce Taxable Sales Price
Other News
Recently Proposed Rules
2010
December 2010Cigarette Tax; Cigars and Tobacco Products Tax
Coin-Operated Amusement Machine Tax
Franchise Tax
Insurance Tax
Sales Tax
- Court Case Summary: Combs v. Home & Garden Party, Ltd.
- Hearings Summary – Flight Instruction is Not Taxable; but Flight Instructors Buying Aircraft Need a Permit
- Hearings Summary: Mobile Telecommunications Sourcing Act is Not Applicable to Calls Made in Mexico
- Exports and Refunds – A Friendly Reminder
Other News
November 2010
Franchise Tax
- Pass-Through Entities Allowed Oil and Gas Depletion as Cost of Goods Sold (COGS)
- Franchise Tax and the Automotive Repair Industry
Hotel Occupancy Tax
Insurance Tax
Motor Vehicle Tax
Sales Tax
- Consumables Used in Construction Contracts
- Energy Drinks: Food, Soft Drink or Dietary Supplement?
- Holiday Shopping Reminder: Internet Orders are Subject to Texas Sales and Use Tax
- Maintenance by the Seller of Software
October 2010
Franchise Tax
- Charges to Customers to Recover Texas Franchise Taxes Paid by a Seller
- Franchise Tax and the Restaurant Industry
- Use That Print Button!
Insurance Tax
Mixed Beverage Gross Receipts Tax
Motor Vehicle Tax
Sales Tax
- Court Case Summary: Southern Plastics, Inc. v. Combs
- Tax-Free Purchases of Items Donated to Qualified Nonprofit Organizations
- 'Tis the Season – Holiday Goods and Services
Recently Adopted Rules
Recently Proposed Rules
September 2010
Coin-Operated Amusement Machines Tax
Franchise Tax
Insurance Tax
Motor Vehicle Tax
Sales Tax
Recently Adopted Rules
August 2010
Cigars and Tobacco Products Tax
Franchise Tax
Hotel Occupancy Tax
Insurance Tax
Sales Tax
- Charges to Customers to Recover Texas Franchise Taxes Paid by a Seller
- Court Case Summary: Southwestern Bell Yellow Pages v. Susan Combs
Recently Adopted Rules
July 2010
Franchise Tax
- Service Industry Entities Generally Do Not Qualify for the Cost of Goods Sold Deduction
- Use of the Multistate Tax Compact (MTC) Apportionment Formula is Prohibited for Texas Franchise Tax
Hotel Occupancy Tax
Insurance Tax
Sales Tax
- Reminder: Sales Tax Holiday is August 20, 21 and 22!
- Fundraisers and Collecting Sales Tax
- Garage Sales and the Occasional Sale Exemption
Recently Adopted Rules
Recently Proposed Rules
June 2010
Fraud Detected Under New Law
9-1-1 Prepaid Wireless Emergency Service Fee
Franchise Tax
Insurance Tax
- Automobile Burglary and Theft Prevention Authority Assessment (ABTPA): Semi-Annual Payment is Due August 1
- Volunteer Fire Department Assistance Fund Assessment – It's That Time Again
Sales Tax
- Camps for Children
- Sales Tax Holiday for School Supplies, Clothing, Shoes and Backpacks
- Summer Fun in the Sun - Keeping it Cool and “Collected”
Texas Workforce Commission News You Can Use
Recently Adopted Rules
Recently Proposed Rules
May 2010
Cigars and Tobacco Products Tax
Franchise Tax
Insurance Tax
Sales Tax
- Repairs on “Certified” Pre-owned Motor Vehicles
- Motor Vehicle Maintenance Programs
- Goodwill Repairs/Implied Warranty
- Promotional Items
- Purchases by Nonprofit Organizations
- Improving Realty for a Nonprofit Organization – Verify Before You Buy!
Recently Adopted Rules
Recently Proposed Rules
April 2010
Franchise Tax
Insurance Tax
Mixed Beverage Gross Receipts Tax
Motor Vehicle Tax
Sales Tax
- Energy Star Sales Tax Holiday
- Hearing Summary: Direct Payment Permit Holders – Sales Tax vs. Use Tax: The Certificate Matters
Hearing No. 101,897 (2010) - Hearings Summary: Class Action Refunds Not Authorized
Hearing Nos. 102,508, 102,509, and 102,510 (2010)
Recently Adopted Rules
Recently Proposed Rules
March 2010
Franchise Tax
Hotel Occupancy Tax
Insurance Tax
Sales Tax
- Resale Exemptions — “Use in Business” Not a Valid Claim
- Structural Pest Control Licensing and Regulation Transferred to the Texas Department of Agriculture — Taxability of Service Determined by Activities Performed, Not the Licensing Agency
Recently Adopted Rules
Recently Proposed Rules
February 2010
A Special “Thank You” To Webfilers
Energy Efficient Appliance Rebate Program
Franchise Tax
Hotel Occupancy Tax
Insurance Tax
Sales Tax
- News Content Does Not Equal Newspaper
- Some Words on Advertising, Free Publications and the Manufacturing Exemption
Recently Adopted Rules
January 2010
Automotive Oil Sales Fee
Federal Income Tax
Franchise Tax
- 2010 Franchise Tax Forms Are Now Available
- Proposed Amendments to the Passive Entities Rule Are Withdrawn
- Clarification of Certain Eligibility Requirements for the 0.5 Percent Tax Rate
Insurance Tax
- Electronic Reporting and Paying of the Automobile Burglary and Theft Prevention Authority Assessment
Interest Rates
Sales Tax
- Court Case: Verizon North, Inc.; Software
- Hearing Summary: ATV Used in the Care of Horses not Held for Sale
- Sales Tax Deductions on Federal Income Tax Returns
- Senate Bill 1199 and Sales Tax Refunds for Nonprofit Organizations
- Tax-Free Sales: It's a New Calendar Year
Recently Proposed Rules
2009
December 2009Coin-Operated Amusement Machines Tax
Franchise Tax
Insurance Tax
Sales Tax
Recently Adopted Rules
Recently Proposed Rules
November 2009
Franchise Tax
Hotel Tax
Insurance Tax
Sales Tax
Recently Proposed Rules
October 2009
Franchise Tax
Insurance Tax
Sales Tax
- IV Systems and Catheters — Use-Based Exemption or Product-Based Exemption?
- Motor Vehicle Repair and Maintenance Shops, Oil Change and Lube Businesses
- Senate Bill 575 and Local Sales and Use Tax on Residential Use of Gas and Electricity
Recently Proposed Rules
September 2009
Coin-Operated Amusement Machine Tax
Franchise Tax
Insurance Tax
Sales Tax
- Court Case: Reynolds Metals Company; Rolling Stock
- Hearing Summary: Asset Transfers to Affiliated Companies
Recently Proposed Rules
- Sports and Events Trust Fund (New Chapter)
- Hotel Occupancy Tax
- State Sales and Use Tax
- Motor Fuels Tax
August 2009
Franchise Tax
Hotel Tax
Insurance Tax
Sales Tax
- Hearing Summary: Preliminary Art or Finished Art?
- Purchasing Offices: Your Place or Mine for Local Sales Tax Sourcing?
July 2009 - Legislative Update
2009 Legislative Update
- 9-1-1 Emergency Service Fee
- Cigar and Tobacco Products Tax
- Franchise Tax
- Hotel Occupancy Tax - State Tax Allocations
- Insurance Tax
- Motor Fuels Tax
- Motor Vehicle Sales and Use Tax
- Natural Gas and Crude Oil Taxes
- Sales and Use Tax - General
- Sales and Use Tax - Local Tax
- Sales and Use Tax - Local Jurisdictions Authorized
June 2009
Franchise Tax
Insurance Tax
- Texas Automobile Burglary and Theft Prevention Authority Assessment (ABTPA):
Semi-Annual Payment is Due August 1 - Volunteer Fire Department Assistance Fund Assessment: Billings Are in the Mail This Month
Mixed Beverage Gross Receipts Tax
Sales Tax
- Boats and Personal Watercraft: No Exemption When Out-of-State Buyer Takes Possession in Texas
- Camps for Children
- Hearing Summary: Restaurant Grill Vent Hoods
- School Supplies Added to Sales Tax Holiday!
May 2009
Franchise Tax
Hotel Occupancy Tax
Insurance Tax
- COBRA Subsidy under the American Recovery and Reinvestment Act (ARRA) 2009: Is the Subsidy Portion Subject to Premium Tax?
- Court Case Decision - First American Title Insurance Co. v. Combs
- Multi-State Taxation of Surplus Lines Insurance Business
Sales Tax
- Energy Star Sales Tax Holiday
- Houston Wire and Cable Company: Cable Reels are Packaging Materials
- New Sales Tax Locator Now Available!
- Store Gift Cards and Gift Certificates
- Welding Rods
Recently Adopted Rules
April 2009