Hello, and welcome to the blog of Rascon CPA Firm, your trusted tax accountant in Houston. Today, we’re going to discuss a topic that often raises questions among our clients: What services require sales tax in Texas?
Sales tax is a critical aspect of doing business, and understanding which services are taxable is essential for both businesses and consumers. In Texas, the term “taxable services” is defined in Tax Code Section 151.0101. It includes 17 broad categories of services, each encompassing a variety of specific services.
Taxable Services in Texas
Here are some of the types of services that are taxable in Texas:
- Amusement Services: This includes services related to amusement parks, carnivals, circuses, and similar events.
- Cable Television Services and Bundled Cable Services: This includes all services provided by cable television providers.
- Credit Reporting Services: Services related to credit reporting and credit checks are taxable.
- Data Processing Services: This includes services related to data entry, data retrieval, data search, and other data-related services.
- Debt Collection Services: Services related to the collection of debts are taxable.
- Information Services: This includes services that provide access to information, such as online databases.
- Insurance Services: Certain insurance services are taxable in Texas.
- Internet Access Services: This includes services that provide access to the internet.
- Laundry, Cleaning, and Garment Services: Services related to laundry and garment cleaning are taxable.
- Motor Vehicle Parking and Storage Services: This includes services related to the parking and storage of motor vehicles.
- Nonresidential Real Property Repair, Restoration, or Remodeling Services: Services related to the repair, restoration, or remodeling of nonresidential real property are taxable.
- Personal Property Maintenance, Remodeling, or Repair Services: This includes services related to the maintenance, remodeling, or repair of personal property.
- Personal Services: Certain personal services are taxable in Texas.
- Real Property Services: Certain real property services are taxable in Texas.
- Security Services: This includes services related to security and protection.
- Telecommunications Services: Services related to telecommunications are taxable.
- Telephone Answering Services: This includes services that provide telephone answering services.
It’s important to note that not all services are taxable in Texas. For example, professional services like web design are not typically subject to sales tax. However, some professional services, such as information services, photography, and digital security, are subject to sales tax.
Understanding which services are taxable can be complex. If you have any questions or need assistance with sales tax, don’t hesitate to reach out to us at The Rascon CPA Firm. We’re here to help you navigate the complexities of sales tax in Texas.
Stay tuned to our blog for more insights and updates on Texas tax laws. Thanks for reading!