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Texas Court of Appeals Addresses Sovereign Immunity

In State and Local, Texas Tax by Edward CortsLeave a Comment

On March 19, 2020, the Texas Third Court of Appeals, issued its opinion in Hegar et al. v. J.D. Fields & Company, Inc., Tex. Ct. App. (3rd Dist.), No.03-19-00351-CV, 03/19/2020).  The court ruled that a taxpayer’s sales tax protest is not barred by sovereign immunity. The taxpayer, J.D. Fields & Company, Inc. (hereinafter “Taxpayer”) in this matter is a pipe …

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Texas Comptroller Update Regarding Use Tax on Out-of-State Vehicle Purchases

In Texas Tax by Edward CortsLeave a Comment

Beginning on March 1, 2020, a taxpayer who has purchased an off-highway vehicle (“OHV”) outside of Texas must provide proof that they paid Texas use tax on the vehicle when registering it  with their local county tax assessor.  The Texas Comptroller of Public Accounts (“Comptroller”) has stated that affected taxpayers should use Form 01-163 Texas Use Tax Return – For …

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Collecting Sales Tax in Texas: An Overview for Small Business Owners

In State and Local, Texas Tax by Jason B. FreemanLeave a Comment

Businesses that make their products or services available for sale in Texas can unwittingly be held liable for Texas sales or use tax.  This means that anyone—a business or an individual—offering products or services for sale in the state of Texas, whether online, in their living room, or through brick-and-mortar stores, is generally responsible for collecting sales tax from their …

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RECENT IMPLEMENTATION OF ECONOMIC NEXUS THRESHOLD FOR TEXAS FRANCHISE TAXES IN THE WAKE OF WAYFAIR, INC.

In Nexus, State and Local, Texas Tax by Edward CortsLeave a Comment

In the December 20, 2019, issue of the Texas Register (44 TexReg 8021), the Texas Comptroller of Public Accounts (“Comptroller”) announced that it was adopting proposed amendments[1] to the “nexus” section of 34 TAC §3.586.  The proposed amendments establish rules in which a non-Texas entity can create “nexus” with Texas without having a physical presence in the state.  The effective …

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Your Sins Are Forgiven: The Texas Tax Amnesty Program and Voluntary Disclosure Agreements

In Tax Amnesty, Texas Tax by freemanlawdevLeave a Comment

Former Supreme Court Justice Hugo Black once said, “The United States has a system of taxation by confession.” That statement is true at the federal level as well as the state level. In fact, the Texas government relies on its citizens to “confess” their franchise tax, sales and use tax, and other tax obligations through required reports and payments. However, …