Are core charges taxable Texas?

Core charges are trade-in allowances included in the selling price of a part. … And, the tax agency says, that sales tax is due on the selling price of the new or used part, including the core charge.

Is a core charge taxable?

When selling a new or used part that includes a core charge, the core charge is taxable. This is true even if you refund the core charge to your customer. Tax applies to the core charge because the allowance for the trade-in is considered part of your payment for the sale.

What services are not taxed Texas?

Services. Texas excludes certain services from taxation. These include professional services, such as those offered by physicians, attorneys, accountants, barbers and hairdressers, interior designers, and automobile repair services.

What items are exempt from sales tax in Texas?

For example, flour, sugar, bread, milk, eggs, fruits, vegetables and similar groceries (food products) are not subject to Texas sales and use tax. Tax is due, however, on non-food items such as paper, pet, beauty and hygiene products; clothing; books; and certain edible items.

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Are data processing services taxable in Texas?

Although Texas law (Sec. 151.0035) imposes sales tax on the transfer of data processing services and information services, it also exempts 20 percent of the value of those charges from sales tax (Sec.

Why do you have to pay a core charge?

A core charge is a form of deposit paid when you purchase a battery and is refunded to you when the battery is returned. Core charges promote battery recycling. In all 50 states, retailers can charge a battery core charge and in over 30 states, it is required by law.

Does Walmart give you money for old batteries?

Walmart. Most Walmart stores that have auto services participate in a battery recycling program for customers. … Walmart also participates in the core charge program to give customers refunds on the core charges they paid when they purchased their old battery at Walmart.

What is tax free in Texas?

Qualifying Items

During the sales tax holiday, you can buy most footwear and clothing (sold for less than $100) tax free. You do not need to give the seller an exemption certificate. The exemption applies to each eligible item sold for less than $100, and there is no limit to the number of qualifying items you can buy.

Do you charge sales tax on new construction in Texas?

You don’t charge your customer tax. … You then collect state sales tax, plus any local tax, from your customer on the amount you charge for the materials and those services. Your charge for the materials must be at least as much as you paid for them. The construction labor is not taxable.

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Is Lawn Care taxable in Texas?

Landscaping and lawn care are not taxable when purchased by a contractor or home builder as part of the improvement of real property with a new residence. … In a lump sum contract (one amount for materials and labor), the landscaper pays tax when purchasing the materials and does not collect tax from the customer.

Do you have to pay sales tax on services in Texas?

Texas imposes a 6.25 percent state sales and use tax on all retail sales, leases and rentals of most goods, as well as taxable services.

Is bottled water taxed in Texas?

(3) Water, including bottled water, spring water, sparkling water, or mineral water, is exempt from sales tax.

What is considered taxable sales in Texas?

This includes purchases from Texas or out-of-state sellers, or items taken out of inventory for use, items given away, and items purchased for an exempt use but actually used in a taxable manner. Taxable purchases do not include inventory items being held exclusively for resale.

What services are subject to sales tax in Texas?

Taxable Services

  • Amusement Services. …
  • Cable Television Services and Bundled Cable Services. …
  • Credit Reporting Services. …
  • Data Processing Services. …
  • Debt Collection Services. …
  • Information Services. …
  • Insurance Services. …
  • Internet Access Services.

Are credit card processing fees subject to sales tax in Texas?

In a case currently pending in the Austin Court of Appeals, a payment processor is challenging the Comptroller’s assessment of sales and use tax on payment processing services, claiming they constitute taxable data processing. Interchange fees and credit/debit card processing services are exempt from sales tax.

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Is there sales tax on cleaning services in Texas?

You must pay tax on all soap, cleaners, chemicals, materials, supplies, and equipment used to perform your services. … When performing a nontaxable service, you must pay tax on these items.

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