Texas – Insurance Services of Less Than 1% Provided by CPA Exemption

Texas – Effective January 1, 2018, Senate Bill 1083 amends tax code to exempt from sales and use tax insurance services performed by certified public accounting firms if services are less than 1% of the firm’s previous year’s total revenue.

Additionally, insurances services are exempt if a service is performed on behalf of a certified public accounting firm by an owner of the firm or a member of the firm ’s affiliated group, if less than one percent of the owner ’s or member ’s total revenue in the prior calendar year is from services in this state that would otherwise constitute a taxable insurance service.

Texas tax code Sec. 151.0039. “INSURANCE SERVICE” is defined as insurance loss or damage appraisal, insurance inspection, insurance investigation, insurance actuarial analysis or research, insurance claims adjustment or claims processing, or insurance loss prevention service.

About Davis & Davis LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis & Davis LLC – Sales Tax Experts specializes in sales/use tax refund recovery 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 Davis & Davis, 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:

Or call today for a consultation:


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.