TexasTaxMan.com
TEXASTAXMAN.COM

Thomas G. Post
"The Texas Tax Man"
Certified Public Accountant
Home | Sales Tax | Payroll | ACA | Entrepreneurs | Sole Proprietors

1305 Keefer, Suite 103
Tomball, TX 77375
P O Box 1757
Tomball, TX 77377-1757
Phone - 281-351-2688

tpostcpa@aol.com
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Sales Tax

The retailer serves as a Tax Collector when it comes to the sales tax. The seller computes sales tax as a percentage of the gross sales price (7.25% plus) and adds it to the amount he (she) collects from the customers. The business owner is an agent of the government who has a fiduciary responsibility to collect the proper amount of tax and pay it over to the Taxing Authority. If the business owner fails to properly serve as a tax collector he will have to pay the tax himself (herself).

Again sales tax is based on gross sales price - the largest number in the income statement "Profit & Loss Statement". Even a start up business that has not year turned a profit can pile up huge sales tax deficiencies. The Houston Chronicle recently reported how Chips Mart on IH-45 recently went out of business because of a sales tax problem.

Sales tax rules vary widely between industry classifications. The rules are not complicated and can be learned by surveying the industry. The State Comptrollers Office will gladly send you a copy of the rules that apply to your industry. Whatever you do, when you start a new business – learn the sales tax rules and properly collect and pay the sales tax due. Also, if you notice changes among your competition re sales tax be sure to follow up with the State Comptrollers Office or you business advisor to make sure you are not left holding the bag. (See Payroll Tax Section for further discussion).

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281-351-2688

 

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