Texas Remote Seller’s Single Local Tax Rate (Oct. 1, 2019 – Dec. 31, 2020)

For the period of Oct. 1, 2019 – Dec. 31, 2020, the single local tax rate will be 1.75 percent. Going forward, the Comptroller will compute the single local tax rate and publish it in the Texas Register prior to the beginning of each calendar year.

The Wayfair decision held that a state could impose sales and use tax collection obligations on vendors without physical presence in the state (remote sellers), provided that the collection obligation would not impose an undue burden.

Beginning Oct. 1, 2019, the Comptroller will enforce the collection obligation on sellers whose only activities in the state are the remote solicitation of sales. The Comptroller has provided a safe harbor for remote sellers. The Comptroller will not require remote sellers with total Texas revenue of less than $500,000, in the preceding twelve calendar months, to obtain a permit or collect and remit sales and use tax.

The 86th Legislature also eased the burden on remote sellers by enacting HB 2153 (codified at Texas Tax Code § 151.0595), which provides a single local tax rate for remote sellers. A remote seller may choose to collect this single local tax rate and notify the Comptroller’s office of its election using Form 01-799, Remote Seller Intent to Elect or Revoke Use of Single Local Use Tax Rate (PDF) by email or mail instead of calculating and remitting local tax based on the total local tax rate in effect at the destination.

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