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.
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