Texas Sales Tax


I just read this article about Texas comptrollers ‘visiting’ a Lubbock gun show.  The statements in the article got me curious so I visted the following sites regarding Texas Sales Tax Law

http://www.window.state.tx.us/taxinfo/sales/faq_collect.html – Texas Sales Tax FAQ

http://www.window.state.tx.us/taxinfo/taxpubs/tx94_153.html – Gun Shows and Texas Sales Tax

http://www.window.state.tx.us/taxinfo/taxpubs/tx94_108.html – Engaged in Business

http://www.window.state.tx.us/taxinfo/taxpubs/tx94_171.html – Internet and Texas Tax Law

If you read these carefully, you will find something very interesting.

By Texas Law, if you sell more than 2 items of any value within a 12 month period, you are breaking the law if you do not have a sales tax permit and collect sales tax.

Yep, if you do any of the following, you are breaking Texas law:

  1. Have a garage sale
  2. Sell 3 items on e-bay to Texas customers within 12 months
  3. Sell 3 items on craig’slist within 12 months
  4. attend a gun show (NOT as a dealer) and sell more than two items (say three magazines)!
  5. if you rent anything to anyone
  6. if have a place where you store stuff for sale
  7. if you have any physical location that acts as an office for the sale of more than 2 items per 12 month period

So all you people that do any of the following… BEWARE! The comptrollers are apparently trolling for you now.

BTW: Getting the Sales Tax permit is free, you just have to charge (in most places) 8.25% and send that to the state… to avoid breaking the law.


~ by OgreMkV on May 3, 2009.

2 Responses to “Texas Sales Tax”

  1. Regarding the illegality of garage sales (number 1 on your list of “breaking texas law”:

    I have spoken with the comptroller’s offices and it is legal to hold garage sales so long as you do not exceed 2 garage sales in a 12 month period. After that, however, you do have to apply for a tax license and start charging tax on items.

  2. Ah yes, thank you. Of course, if any of the items have significant value, then you can only sell two of them per year.

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