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.
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