Sales Tax Articles
Sales Tax State Activity Update - February 2006
Texas Tags E-Filing Tax Returns Transmission Taxable
During tax season, taxpayers have many options available for submitting their tax returns to the taxing authorities or the Internal Revenue Service. One of these options is to file the tax return electronically.
The Comptroller reminds taxpayers that the electronic transmission of tax returns is taxable as a telecommunications service. Whether the transaction is subject to Texas tax is determined based upon where the transmission originates. If the transmission originates in Texas, state and possibly local tax is due.
Telecommunication services are automatically exempt from local sales and use tax unless the city, county, MTA/CTD or Special Purpose District repeals the exemption. Local taxes are due based upon the location where the communication originates. If the transmission originates outside of Texas, no Texas tax is due.
(Comptroller of Public Accounts Letter, No. 8811L0916B13, 11/01/88)
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