Texas Tax Exempt Forms

Sales tax laws can be complex, depending on whether you sell goods in Texas or just ship them to the state. It’s important to keep clear invoices and records to validate deductions, exclusions, and exemptions. The state also requires you to collect tax on shipping and handling charges. In addition to collecting taxes on the sale of tangible goods, Texas also requires sellers to collect use tax on items purchased outside the state and brought into the state for use, consumption, or enjoyment. You must have a valid exemption or resale certificate to validate each transaction.

A sales tax collection software solution helps you comply with the state’s requirements. It also helps you keep track of your sales data and remittance schedules. The state recommends filing a sales and use tax return once a year. If you fail to file, the state may impose late fees and interest on your unpaid taxes.

What is Texas Tax Exempt Form 01-339?

If you’re a business owner in Texas and sell taxable products, you must submit a sales tax exemption certificate. This document is known as Form 01-339 and is available on the Texas comptroller’s website. You must use this document when purchasing items for resale, leasing, or other commercial purposes.

The state of Texas offers several homestead property exemptions, which reduce the appraised value used to determine local property taxes. These reductions can be either partial or total. A partial exemption removes a percentage or fixed dollar amount from the appraisal value, while a total exemption excludes the property from taxation altogether. Taxing units are required by state law to offer certain mandatory exemptions, and they may choose to offer others at their discretion.

This exemption certifies that a person is exempt from the payment of sales and use taxes on a particular item purchased for resale. It’s important to keep this document on hand in case you need to provide it to a vendor.

Texas Tax-exempt Form for Churches

While most people know that churches pay no property taxes on their houses of worship, fewer realize that many also get a valuable tax break on clergy residences as well. Known as parsonages, these luxury estates are often nestled in the most exclusive enclaves of Texas and include swimming pools, tennis courts, decorative fountains, and serene grottoes. However, unlike their neighbors, these clergy residents pay no taxes on the properties, leaving other taxpayers to foot the bill for schools and local government services.

A religious organization must meet Texas state law and IRS classification to qualify for this state exemption. The nonprofit must submit a copy of its IRS determination letter and application to the local tax appraisal district. Then, it must file a reapplication every year with its home state and the Texas Comptroller. An approved AP-207 provides exemption from Texas sales and hotel tax, as well as state franchise (corporate) tax.