For businesses operating in Texas, like other states, state and local taxes feel overwhelming. The state of Texas levies a 6.25 percent state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes up to 2 percent. The range of total sales tax rates within the state of Texas is between 6.25 percent and 8.25 percent.
Further, use tax is collected on the consumption, use or storage of goods in Texas if sales tax was not paid on the purchase of those goods. The use tax rate is the same as the sales tax rate.
This can have a tremendous negative impact on your business's profits — especially if problems arise. For many businesses, problems occur when they collect sales taxes but do not pay the sales taxes over to the government. Rather, they use the funds for other business expenses.
When Problems Arise
Problems are also created when businesses do not collect taxes on sales when they should. Many times, sales tax problems are created when business owners do not keep good records. Occasionally, a business that collects all of the tax pays over to the government all of the tax and keeps good records still gets selected for audit.
At the Dallas-Fort Worth metro area law firm of Brown, PC, we represent businesses in these state sales and use tax audits, in administrative hearings and in state District Court where necessary. Serving clients throughout Texas and in other states, we are dedicated to achieving the best possible results for our clients.
The law requires that returns are to be filed on or before the 20th of the month following the month of the purchase. For example, sales made in the month of January should be reported to the state of Texas on or before the 20th of February.
Personal Liability for Sales Taxes Collected and Not Paid
Matters of sales and use tax should be taken seriously. This is especially important because business owners can be held personally liable for sales taxes collected and not paid over to the Comptroller of Public Accounts. Sales tax collected by business owners are held in trust for the state government by the business owners. For this reason, the business owners can be held accountable in their personal capacity for state sales tax collected but not paid over to the state government.
Contact Brown, PC
Brown, PC, has helped many professionals, high net-worth individuals and businesses embroiled in state and local tax controversies. If you are under investigation or have already been charged, you are encouraged to contact a Dallas-Fort Worth state and local tax lawyer at our law firm.
Call 888-870-0025 or contact us online to schedule an appointment with an experienced attorney. Centrally located in the Dallas-Fort Worth area in Texas, the law firm serves clients nationwide and internationally.Print this Page