Only the portion of your service used in Texas is taxable. If your service is used to support an independent part of a customer's business, other than the general administration or operation of the company, the service is used in the place where that activity takes place. Laundry, cleaning and tailoring services are taxable services. The state of Texas does not usually collect sales tax on the vast majority of services provided.
However, there are some services that are taxable. Examples would be cable television services, entertainment services, garbage collection services, floral services, construction services (provided materials are loaded separately), mobile telecommunications services, landline telephone communication services, gas services natural and electricity and non-residential real estate property repair and remodeling services, This means that a web designer would not have to collect sales tax, while a florist could be required to collect sales tax. Leased or purchased machinery, equipment, spare parts and accessories that have a useful life of more than six months and that are used or consumed in the manufacture, processing, manufacture or repair of tangible personal property for final sale are exempt from state and local sales and use tax. Tangible personal property that becomes an ingredient or component of an item manufactured for sale, as well as taxable services performed on a product manufactured to be marketable are exempt.
The exemption also applies to tangible personal property that makes a chemical or physical change in the product being manufactured and is necessary and essential in the manufacturing process, as well as to semiconductor manufacturing and to cleanrooms and pharmaceutical, biotechnological equipment. Texas businesses are exempt from paying state sales tax and labor use to build new facilities. Similarly, an accountant or accountant does not provide taxable data processing services when he applies knowledge of accounting principles to produce financial reports such as income statements, balance sheets, or profit or loss statements, or to prepare federal income tax returns, franchises state or sales taxes, even if such work is done on a computer. Security services include any service for which the Office of Private Security of the Texas Department of Public Safety requires a license under sections 1702,101 or 1702,102 of the Texas Occupations Code.
Taxable entertainment services include sightseeing tours, online games, fortune-telling and similar activities. The collection and provision of general or specialized news or other current information to others, including research or retrieval of electronic data, and access to databases of such information are information services. In addition to the taxable services mentioned above, other types of sales that may commonly be considered services are taxable such as the sale, processing, or remodeling of tangible personal property. The term debt collection service does not include collection of court-ordered child support or medical child support, or collection of current credit and real estate accounts, including mortgage and rent payments.
Taxable answering services do not include call center operations, such as handling customer complaints and receiving. The creation or delivery of a credit report (or any part of a credit report) for a fee or any other consideration is a credit reporting service. Motor vehicle parking and storage services include charges for parking meters (including privately owned and municipal parking meters); parking decals and permits; valet parking services; and seizure fees. A debt collection service is any activity to collect or adjust delinquent debt, collect or adjust a claim, or to recover property subject to a claim.
Pest control and extermination, collection or disposal of garbage and other debris, cleaning and custody services (including sweeping or cleaning of parking lots), garden and lawn maintenance (including tree surgery and plant leasing), and surveying are real estate services subject to taxes. Taxes must be paid on credit reporting services if the credit applicant's address is in Texas at the time of requesting a report, and the person who requested the credit report is in Texas or is doing business in Texas. See also Publication 94-143, Draftsmen and Designers, and Publication 94-187, Mold Remediation Services. Services such as shoe cleaning or repair, appliance repair, furniture restoration or upholstery, jewelry repair or cleaning, and dog grooming are taxable.
Taxable insurance services include damage and loss assessment, inspection, investigation, adjustment or processing of claims, actuarial analysis or investigation, and insurance loss prevention. . .