Texas Taxes

Taxes are a method to raise money for public purposes under a governmental body’s taxing power. Though the taxing power may concern a variety of forms, publications, and measures, taxes may only be collected, imposed, or levied for the service of public benefit. Furthermore, though subject to certain limitations relating to the constitution, jurisdiction, or statute and the requirement of serving a public purpose, theoretically every person and all property may be subject to a tax. In Texas, the most common types of taxes imposed at the local or state level include:

  1. Gross receipts tax. This tax is similar to a sales tax, however it is levied on designated businesses engaged in selling certain goods or services.
  2. Intangible assets tax. This tax is imposed on specified businesses, and the amount asset, appointment , or valuation determined by the state tax board. 
  3. Property tax. This tax may be imposed on all property, including real, personal, or mixed, as well as tangible or intangible, unless the property is specifically and expressed from taxation.
  4. Sales, excise, and use tax. This tax applies to transactions that involve tangible personal property with the amount of tax owed be determined by the amount or quantity of goods or services sold.

Occasionally, a state or local body will correctly assess tax on the taxpayer, but the taxpayer erred and overpaid. For these scenarios of overpayment, taxpayers may submit an application for a refund of erroneous or overpayment to the taxing body. The application for a refund shall be submitted within three years following the date of the error, otherwise the taxpayer waives the right to receive a refund. If the taxing body denies the application for a refund, the taxpayer is permitted to pursue judicial review.

The information contained in this post is for general information and educational purposes only. The application and impact of laws can vary widely based on the specific facts involved. Given the changing nature of laws, rules and regulations, and the inherent hazards of electronic communication, there may be delays, omissions or inaccuracies in information contained in this publication. Accordingly, the information on this post is provided with the understanding that the author and publishers are not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. Before making any decision or taking any action, you should consult a professional.

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