Texas Updates Rule on Occasional Sales Exemption

Texas has updated its sales tax rule regarding the occasional sales exemption to reflect H.B. 373, Laws 2007. H.B. 373 states that a sale of tangible personal property by an individual is an occasional sale if the property was originally purchased by the individual or a family member for personal use and the total receipts from such sales do not exceed $3,000 in a calendar year. Additionally, the individual must not hold a sales tax permit or be required to hold a sales tax permit, and the sale must not be made through the use of an auctioneer, broker, or factor, other than an online auction. If the total receipts from sales of such property exceed $3,000 in a calendar year, the individual must obtain a sales tax permit and collect tax on all sales of taxable items in the state, beginning with the first sale that causes the total receipts to exceed $3,000. (34 TAC 3.316, Texas Comptroller of Public Accounts, effective October 22, 2015)

Posted on October 26, 2015