Texas—Sales and Use Tax: Guidance on Motor Vehicle Rental Tax Issued

For sales and use tax purposes, the Texas Comptroller of Public Accounts issued a motor vehicle rental tax guide for taxpayers who rent motor vehicles in Texas. The guide discusses the taxpayers’ permitting, tax collection, reporting, and records retention responsibilities for tax on gross receipts for vehicles they rent to customers.

The guide, among other topics, discusses:

• the motor vehicle rental tax permit;
• tax collection by taxpayers and tax rates: exempt rentals and exemption certificates;
• the deduction for bad debts;
• reporting and tax remittance; and
• credits against minimum tax.

Motor Vehicle Rental Tax Guide

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.