Texas Comptroller Amends Remote Seller Sales Tax Rules

December 21, 2018

As part of the Comptroller’s Wayfair implementation, amendments to Rule 3.286, concerning seller’s and purchaser’s responsibilities, will be effective January 1, 2019. The amendments establish a safe harbor for remote sellers whose Texas revenues are below $500,000 from sales of tangible personal property and services in the preceding 12 calendar months. Remote sellers with Texas revenue below the safe harbor amount will not have to register and collect tax. Remote sellers whose Texas revenue exceeds the safe harbor amount shall register and begin collecting tax.

To allow time for remote sellers to prepare for these changes, the amendments postpone the permitting and tax collection requirements for remote sellers until October 1, 2019. The initial 12 calendar months for calculating a remote seller’s Texas revenues will be July 1, 2018, through June 30, 2019.

In further assisting taxpayers prepare for these adjustments, the Comptroller has centralized helpful information concerning Texas tax responsibilities and resources for sellers after Wayfair.

For questions about Wayfair and the amendments to Rule 3.286, please contact:

Doug Sigel
Practice Group Leader, Sales & Use and Income Tax
512-459-6611
doug.sigel@ryanlawyers.com

Rich Moore
Associate, Sale & Use and Income Tax
512-459-6613
richard.moore@ryanlawyers.com