Read the local state sales tax reports, like the one on this page and wondered how it all works?
Likes this, according to Comptroller Glenn Hegar.
In Texas, local sales taxes are assessed in conjunction with the state tax, usually on the same transactions, and collected along with state sales taxes using forms designed to work together.
The agency thus provides taxpayers with a single “point of contact,” a single entity that collects state and local sales taxes, audits the associated reports and answers taxpayer questions.
In calendar year 2015, the Comptroller’s office collected an average of about $669 million in local sales taxes each month.
The agency allocates this revenue to 1,544 separate taxing jurisdictions, based on what businesses report about their places of operation and their sales activity. (The state deducts two percent, deposited by law to the state’s General Revenue Fund, to help defray the cost of collecting, administering and auditing local sales taxes.)
For nearly 60 percent of all filers, the agency will provide paper and online sales tax forms with the appropriate local tax rate already filled in for each outlet.
“All the taxpayer has to do at this point is to multiply the total local sales tax rate by the amount of taxable sales at each outlet to get the total amount of tax due for that location,” Hegar said.
The remaining taxpayers (about 263,000) must report their collections with a list itemizing the tax collected for each applicable local jurisdiction.
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