Texas Refund Requests for Cable Television, Internet Access, and Telecommunications Service Providers Due in April

Texas – According to the Texas Comptroller’s office, April 2, 2018, is the deadline for cable television, internet access, or other telecommunications services to submit a refund request for 2017 taxes paid for qualifying purchases.

Cable television, internet and telecommunication providers can claim a 6.25% refund on Texas state sales and use taxes paid on qualified purchases.  The refund for qualified purchases will be based on the sales price, with delivery & installation charges, at the time of purchase.

Requesting a Refund for Tax Paid Jan. 1 – Dec. 31, 2017

Overview

Providers of cable television, internet access or telecommunications services can claim a refund of the 6.25 percent Texas state sales and use tax paid on qualifying purchases.

A “qualifying purchase” is tangible personal property:

• purchased, leased or rented by a provider or its subsidiary;
• directly used or consumed by the provider or subsidiary in or during these activities:
  • the distribution of cable television service;
  • the provision of internet access service; or
  • the transmission, conveyance, routing or reception of telecommunications services; and
• on which the provider or its subsidiary paid Texas state sales and use tax in the calendar year immediately preceding the calendar year in which the request for refund is submitted.

The refund does not apply to the following:

• local sales and use tax; or
• sales and use tax paid on property directly used or consumed in or during the provision, creation or production of data processing or information services, except for equipment used to provide such services as part of a single charge for internet access service as set out in Rule 3.366.

In 2015 and thereafter, providers and their subsidiaries can submit refund requests annually for Texas state sales and use tax paid on qualifying purchases during the entire preceding calendar year.

A provider or its subsidiary claiming the sales and use tax refund under this program cannot claim special property tax benefits for economic development under Tax Code Chapter 313, Subchapter B on that same tangible personal property.

This program’s total available refund amount is capped at $50 million each calendar year. If the total of all qualifying refund requests received for a calendar year exceeds this cap, each provider or subsidiary submitting an eligible refund request will receive a pro rata share.

https://comptroller.texas.gov/taxes/sales/refunds/cit-refunds.php

About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts (DDH LLC) specializes in sales/use tax audit consulting and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At DDH LLC we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.

For sales/use tax compliance questions or audit-related concerns, we are here to help!

Contact us at Davis Davis & Harmon LLC or call 972-488-5000