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For Immediate Release
September 30, 2009
Texas – Taxpayers Should Check Their Mail Boxes for Changes to Local
Sourcing of Sales Tax
The Tax Policy Division of the Texas Comptroller’s
office is sending out a special mailing to Taxpayers that will explain
changes to local sourcing of sales tax beginning September 1, 2009.
This change will affect the collection of local sales
tax for Taxpayers with multiple business locations in the State.
Effective September 1, 2009, sales by a vendor with multiple business
locations in Texas will be sourced to the location where the retailer
first accepts the order, if the order is place in person by the
purchaser. Currently, sales by a vendor with multiple locations are
sourced to the location from where the goods are shipped.
Orders that are not placed in person, such as by
telephone, mail, or via the Internet, will still be sourced at the
vendor’s place of business in Texas from where the goods are shipped.
There is a five-year exclusion, however, for Taxpayers
who have warehouses that are places of business of the Taxpayer, if the
Taxpayer has an existing Economic Development Agreement with the city or
county in which the warehouse is located. Caution: to be eligible
for this exclusion, the Taxpayer must have entered into the agreement
prior to January 1, 2009, and proper, detailed documentation must
be provided to the Comptroller’s Office, on or before September 1, 2009,
by the city or county, with help from the Taxpayer. This exclusion will
expire on September 1, 2014.
If you would like additional
information on this topic or have any questions,
please contact the taxdesk@thesaltgroup.com
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