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Texas: Sales Tax Refund for Telecommunications Providers


 Texas: refunds available for providers of telecommunication services.

Since September 2013, Texas Comptroller of Public Accounts, more than $50 million in refund claims had been submitted as of November 6, 2014.

The Comptroller is currently verifying received refund claims and is still accepting new claims by email. Refunds will be doled out in the order of receipt, “based on the availability of funds.”

A “qualifying purchase” is tangible personal property:

  • Purchased, leased or rented by a provider or its subsidiary on which Texas state sales and use tax was paid by the provider or subsidiary.
  • Directly used or consumed by the provider or subsidiary in or during: the distribution of cable television service; the provision of internet access; or the transmission, conveyance, routing or reception of telecommunications services.
  • On which Texas state sales and use tax was paid in the calendar year immediately preceding the calendar year in which the request for refund is submitted.

The refund does not apply to local sales and use tax or “sales and use tax paid on property directly used or consumed in or during the provisions, creation or production of data processing or information services, except for equipment used to provide such services as part of a single charge for internet access service as set out in Rule 3.366, Internet Access Services.” Additional information.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.