News & Analysis as of

Texas State Taxes

Freeman Law

Texas Sales and Use Tax | The Manufacturing Exemption

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We’ve previously discussed the general rule that Texas sales and use tax are imposed on sales of “tangible personal property” or “taxable services,” [1] and that the Texas Tax Code and Comptroller’s Rules set out exemptions...more

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Texas Sales and Use Tax Treatment of Software and Computer Programs

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The function and utility of computers has changed and evolved at an exponential rate over the last several years, and will likely continue to do so, particularly as advancements like artificial intelligence become integrated...more

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Texas Tax Roundup | June 2023 | Protest Payments, Exempt Organizations, and More!

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Welcome back to another hard-hitting edition of Texas Tax Roundup. Let’s see what the Texas tax world weathered the scorching month that was June 2023: Court Cases - Protest Payments - L.L.C., Inc. and Fun...more

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Texas Sales and Use Tax Implications of Oil and Gas Well Servicing

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In certain circumstances, services performed on oil and gas wells or related equipment may be subject to Texas sales or use tax.  The taxability of these services is fraught with complexity, but is discussed briefly below....more

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Texas Legislative Update | Qualified Projects

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Summary: The Texas Legislature enacted four bills that 1) expand the list of cities that can build qualified projects (i.e., hotel and convention center projects subject to certain specifications) under Texas Tax Code Chapter...more

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Texas Tax Update | May 2023 | Hotel Projects, Successor Liability, and More!

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Hiya people! Welcome back to another installment of the Texas Tax Roundup. Last month was pretty lowkey (aside from the Legislature’s regular session wrapping up, about which more later). Let’s see what happened!...more

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Rentals Versus Services Under Texas Sales and Use Tax

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One of the thorniest issues in Texas sales and use tax is the distinction between the rental of tangible personal property (which is subject to tax) and the provision of a service (which is only taxable if the service is...more

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Texas Tax Roundup | March 2023: Flowback, Welding, Local Taxes, and More!

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Franchise Tax - Apportionment - 34 Tex. Admin. Code § 3.591 (Margin: Apportionment)—The Comptroller adopted his amendments outlined in our previous post to implement the Texas Supreme Court’s opinion in Sirius XM...more

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Texas Tax Roundup | February 2023

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Aloha y’all. Welcome back to the Texas Tax Roundup, where we gab about all things Texas tax. It was a relatively uneventful February in the Texas tax universe—no cases or all-that-interesting rules to speak of, and most of...more

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Texas Tax Roundup | January 2023

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Hiya, folks and welcome back to a whole new edition (in a whole new year) of the Texas Tax Roundup! January started the year off with a blast! Let’s see what happened!   Sales and Use Tax  Governmental Exemption...more

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Texas Tax Roundup | December 2022: Sweepstakes, Medical Records, and More!

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December was a bit of a slow month on the Texas tax front. Hopefully everyone was out of their respective offices and enjoying the holidays/resting up for the upcoming legislative session. Still, we got an interesting opinion...more

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Forfeiture and Reinstatement under the Texas Franchise Tax

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The failure of a taxable entity to file Texas franchise tax reports or pay franchise tax when due can have serious consequences, including loss of the ability of the entity to sue or defend itself in court and liability of...more

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Texas Tax Roundup | November 2022: What’s a Franchise Tax?

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Hey everybody! Welcome back to another for another edition of Texas Tax Roundup! Hope y’all had a happy Thanksgiving! We got some franchise tax apportionment, some sales and use tax in the oil and gas industry, and some...more

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Texas Tax Round Up | September 2022

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Court Cases Sales and Use Tax Manufacturing Exemption Hegar v. Tex. Westmoreland Coal Co., Case 21-1007 (Tex. Sept. 30, 2022)—In this case, the Texas Supreme Court denied the Comptroller’s petition for review, leaving the...more

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Texas Tax Roundup | May 2022

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Howdy folks, and welcome back to another captivating installment of Texas Tax Roundup, where we gab about all things Texas taxes. Nothing court-side this month, just a bunch at the administrative level. Still, it’s...more

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Texas Tax Roundup | April 2022

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Hiya folks, and welcome back to another gripping installment of the Texas Tax Roundup. So, let’s ditch the small talk and get started! ...more

Akerman LLP - SALT Insights

Texas Supreme Court Rejects Texas Comptroller’s “Receipt-Producing, End-Product” Act Test for Sourcing Receipts from Services

On March 25, the Texas Supreme Court issued a highly-anticipated decision concerning the proper test to source receipts from services for purposes of Texas franchise tax. By statute, receipts from a “service performed in this...more

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[Podcast] What Lies Beneath - When Does the Sales Tax Manufacturing Exemption Start?

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How does the manufacturing exemption apply when the end product starts off as real property? Matt Hunsaker breaks down the Texas Court of Appeals opinion in Texas Westmoreland Coal Co. and its implications....more

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SALT Alert Texas Margin Tax Update Paycheck Protection Program (PPP) Loans

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On May 5, 2021, the Texas Governor signed into law House Bill 1195, which excludes federal PPP loans forgiveness as revenue for Texas Margin Tax (the “Margin Tax”). In response to the COVID-19 pandemic, the U.S. Congress...more

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IRS Extends Federal Tax Deadlines for Texas Due to Winter Storms

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The IRS announced that it has extended certain tax return and payment deadlines for those impacted by the Texas winter storms. Texas residents and businesses now have until June 15 to file federal tax returns and make tax...more

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Boo! — Personal Liability Exposure for Your Business’ State Taxes

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Halloween is just around the corner, and if you thought this year could not get any scarier, think again. Failure to remit your business’ taxes to the state may result in a personal visit by the Office of the Texas...more

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COVID-19 Guidance for Texas Businesses

In response to the COVID-19 pandemic, the Texas Governor’s Business and Community Development Division has published helpful frequently asked questions for local small businesses and community economic development partners to...more

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