Texas—Sales and Use Tax: December 2021 Tax Policy News

TX – The Comptroller of Public Accounts issued a newsletter providing general information about Texas taxes for sales and use tax purposes. The publication discusses various tax issues, including the following:

  • The estimated average rate of local sales and use taxes imposed in Texas during the preceding state fiscal year ending August 2021 is 1.75%; this rate will be in effect for the period of January 1, 2022, to December 31, 2022.
  • Taxpayers that itemize deductions on their 2021 income tax return, have the option of claiming a deduction for state and local sales taxes paid during 2021.
  •  Rule 3.302, Accounting Methods, Credit Sales, Bad Debt Refunds, Repossession Refunds, Interest on Sales Tax, and Trade-Ins  Effective date – Jan. 6, 2022
  • The newsletter clarified that the sale of natural gas and electricity used to heat or power homes is not subject to state sales tax.


About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon 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 & Harmon, 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.

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Your email address will not be published.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.