Is excavation equipment taxable in Texas
Yes—excavation equipment rentals are generally taxable in Texas if you are renting the equipment itself (e.g., excavators, skid steers, bulldozers, backhoes) and the customer receives possession or operational control of the equipment. Texas taxes leases and rentals of tangible personal property. (Texas Comptroller) The key distinction is: Situation Tax Treatment Excavator rented without operator Taxable […]
1.5% diesel surcharge on the rental of excavation or other off-road diesel equipment in Texas:
1.5% diesel surcharge on the rental of excavation or other off-road diesel equipment in Texas: The 1.5% surcharge is separate from Texas sales tax. Texas imposes a 1.5% Texas Emissions Reduction Plan (TERP) surcharge on the sale, lease, or rental of qualifying off-road heavy-duty diesel equipment (generally 50+ horsepower). The surcharge is in addition to […]
Are Ice Skating rinks in Texas subject to sales tax
In Texas, admissions and usage fees for ice skating rinks are generally subject to Texas sales and use tax because skating rinks are specifically classified as taxable amusement services. The Texas Comptroller’s rules expressly list “skating rinks (roller skating and ice skating)” as taxable amusement services. Common taxable charges include: There are some important exceptions: […]
Texas manufacturing sales tax exemption
Texas manufacturing sales tax exemption Texas Restaurant Sales Tax Audits: How Fast-Food Franchisees Are Using Manufacturing Exemptions to Reduce Costs Texas restaurant owners and fast-food franchisees are increasingly taking advantage of the Texas manufacturing sales tax exemption to lower operating costs and reduce exposure during Texas sales tax audits. By classifying certain commercial kitchen equipment […]
Amazon FBA Inventory Triggers California Sales Tax Audit and Franchise Tax Liability
Amazon FBA Inventory Triggers California Sales Tax Audit and Franchise Tax Liability A recent California tax decision serves as an important warning for Amazon sellers and other e-commerce businesses: storing inventory in a state can create unexpected state tax obligations, even if the business has no office or employees there. The California Office of Tax […]
Michigan Sales Tax Audit Resale Certificates
Michigan Sales Tax Audit Resale Certificates Michigan Court Clarifies Resale Exemption in Michigan Sales Tax Audit Case A recent Michigan Court of Appeals decision highlights an important issue for businesses facing a Michigan sales tax audit. The court made clear that simply selling products to another business does not automatically qualify a company for the […]
Texas Sales Tax on Welding Labor for Commercial New Construction
Texas Sales Tax on Welding Labor for Commercial New Construction Do You Charge Sales Tax on Welding Labor in Texas? If you’re a contractor, welder, or construction business working in Texas, one of the most common questions is: “Do I need to charge sales tax on welding labor for a commercial construction job?” The short […]
Texas Construction Sales Tax Guide
🏗️ Texas Construction Sales Tax Guide (Simple Rules Every Contractor Must Follow) ⚠️ The #1 Rule: Everything Depends on Contract Type Texas treats real property contractors in two completely different ways: 🟢 1. Lump-Sum Contract (Most Common) What it means: Tax treatment: Key concept:👉 You are the end consumer 🔵 2. Separated Contract What it […]
Can you give a Texas sales tax exemption certificate if you don’t have a sales tax permit
Can you give a Texas sales tax exemption certificate if you don’t have a sales tax permit In Texas, you generally cannot properly issue a resale exemption certificate if you do not have a Texas Sales and Use Tax Permit. Here is the rule under Texas Comptroller of Public Accounts guidance: 1. Resale Certificates (Most […]
Illinois Coin-Operated Amusement Device and Redemption Machine Tax Act
Illinois charges a yearly tax for running certain coin-operated amusement machines (like arcade machines) and redemption machines (machines that give tickets/prizes, as defined in the Criminal Code). Section 1 — The yearly tax Section 2 — Registration, payment, and decals (stickers) (a) What operators must do before putting a machine out for the public Before […]