SALT Report 2983 – Recently enacted legislation in Texas allows cable television service, Internet access service, and telecommunications service providers to claim a refund of the state sales and use taxes paid on the purchase, lease or rental of tangible personal property directly used or consumed in or during the distribution of cable television service; the provision of Internet access service; or the transmission, conveyance, routing or reception of telecommunications services.
However, the refund may not be claimed for property used or consumed in the provision of data processing or information services. Also, the refund program does not apply to sales and use taxes imposed by local jurisdictions.
The total amount of refund is capped at $50 million per calendar year. Therefore, if the total amount of all qualified refunds exceeds the cap, each eligible provider will receive a share of the $50 million.
Additionally, providers who claim the sales and use tax refund cannot claim the special property tax benefits for economic development on that same purchase of tangible personal property.
The refund provisions in House Bill 1133 were effective September 1, 2013.
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