The Sales Tax Sisters Channel: What are Taxable Purchases?

Questions about what to report as taxable purchases when filing a sales tax return? We have you covered. Watch our latest video.

The Sales Tax Sisters Channel: Disaster Exemptions

Mary and Stephanie discuss sales tax exemptions for people who repair commercial property impacted by natural disasters in Texas. Click here to watch this brief informative video.

The Sales Tax Sisters Channel: Texas Sales Tax Return

In this video, Mary addresses line 2 on the Texas Sales & Use Tax Return ⇒ Taxable Sales.

The Sales Tax Sisters Channel: Total Sales vs Taxable Sales

 

Happy 2020!...We are launching ONLINE classes this year!

That's right!  The picture says it all!  We are launching online classes in a few weeks.  The first class was developed for contractors with jobs in Texas.  We are going to build contractors' knowledge of Texas sales and use tax compliance from the ground up.

Divergent Use - The Real-Life Tale of Little Red Riding Hood

Don't play Little Red Riding Hood to the Big Bad Wolf, i.e. divergent use.  Divergent use is a big gotcha for companies that expand lines of business without reconsidering Texas sales and use tax consequences.

Divergent use occurs for Texas  equipment rental companies when equipment purchased tax-free is used in  a taxable manner.  When an equipment rental company issues a resale certificate in lieu of paying sales/use tax and uses the equipment to perform services divergent use has occurred.  It is common for equipment rental companies to decide to lease equipment with an operator.  But when a resale certificate is issued in lieu of paying sales or use tax, a company may not use the equipment to perform services for clients without paying sales or use tax on the divergent use.  Sales or use tax is owed on the fair market rental value for the “normal” term of a rental to third parties or the original purchase price.

“The content of this website is intended to convey general information only and does not represent accounting, tax or legal advice or opinion. Because tax laws, policies, and applications are dynamic and fact-specific, please consult with a state tax professional for a complete analysis of law as it may apply to your specific situation at a particular time. If you require an in-depth review of a specific fact situation, please contact our offices to establish a client relationship for opinion and advice.”