Tex.
Tax Code Section 321.203
Consummation of Sale
(a)
A sale of a taxable item occurs within the municipality in which the sale is consummated. A sale is consummated as provided by this section regardless of the place where transfer of title or possession occurs.(b)
If a retailer has only one place of business in this state, all of the retailer’s retail sales of taxable items are consummated at that place of business except as provided by Subsection (e).(c)
If a retailer has more than one place of business in this state, each sale of each taxable item by the retailer is consummated at the place of business of the retailer in this state where the retailer first receives the order, provided that the order is placed in person by the purchaser or lessee of the taxable item at the place of business of the retailer in this state where the retailer first receives the order.(c-1)
If the retailer has more than one place of business in this state and Subsection (c) does not apply, the sale is consummated at the place of business of the retailer in this state:(1)
from which the retailer ships or delivers the item, if the retailer ships or delivers the item to a point designated by the purchaser or lessee; or(2)
where the purchaser or lessee takes possession of and removes the item, if the purchaser or lessee takes possession of and removes the item from a place of business of the retailer.(c-4)
Subsection (c) does not apply if:(1)
the taxable item is shipped or delivered from a warehouse:(A)
located in a municipality with a population of 5,000 or less;(B)
that is a place of business of the retailer;(C)
in relation to which the retailer has an economic development agreement with the municipality that was entered into under Chapter 380 (Miscellaneous Provisions Relating to Municipal Planning and Development), 504 (Type a Corporations), or 505 (Type B Corporations), Local Government Code, or a predecessor statute, before January 1, 2009; and(D)
in relation to which the municipality provided information relating to the economic development agreement as required by Subsection (c-3), as that subsection existed immediately before its expiration; and(2)
the place of business of the retailer at which the retailer first receives the order in the manner described by Subsection (c) is a retail outlet identified in the information required by Subsection (c-3), as that subsection existed immediately before its expiration, as being served by the warehouse on January 1, 2009.(c-5)
This subsection and Subsection (c-4) expire September 1, 2024.(d)
If the retailer has more than one place of business in this state and Subsections (c) and (c-1) do not apply, the sale is consummated at:(1)
the place of business of the retailer in this state where the order is received; or(2)
if the order is not received at a place of business of the retailer, the place of business from which the retailer’s agent or employee who took the order operates.(e)
A sale of a taxable item is consummated at the location in this state to which the item is shipped or delivered or at which possession is taken by the customer if transfer of possession of the item occurs at, or shipment or delivery of the item originates from, a location in this state other than a place of business of the retailer and if:(1)
the retailer is an itinerant vendor who has no place of business in this state;(2)
the retailer’s place of business where the purchase order is initially received or from which the retailer’s agent or employee who took the order operates is outside this state; or(3)
the purchaser places the order directly with the retailer’s supplier and the item is shipped or delivered directly to the purchaser by the supplier.(e-1)
Except as otherwise provided by Subsection (f), (g), (g-1), (g-2), (g-3), (h), (i), (j), (k), (m), or (n), a sale of a taxable item made by a marketplace seller through a marketplace as provided by Section 151.0242 (Marketplace Providers and Marketplace Sellers) is consummated at the location in this state to which the item is shipped or delivered or at which possession is taken by the purchaser.(f)
The sale of natural gas and electricity is consummated at the point of delivery to the consumer.(g)
The sale of mobile telecommunications services is consummated in accordance with Section 151.061 (Sourcing of Charges for Mobile Telecommunications Services).(g-1)
The sale of telecommunications services sold based on a price that is measured by individual calls is consummated at the location where the call originates and terminates or the location where the call either originates or terminates and at which the service address is also located.(g-2)
Except as provided by Subsection (g-3), the sale of telecommunications services sold on a basis other than on a call-by-call basis is consummated at the location of the customer’s place of primary use.(g-3)
A sale of post-paid calling services is consummated at the location of the origination point of the telecommunications signal as first identified by the seller’s telecommunications system or by information received by the seller from the seller’s service provider if the system used to transport the signal is not that of the seller.(h)
The sale of an amusement service is consummated in the municipality in which the performance or other delivery of the service takes place.(i)
If a purchaser who has given a resale certificate makes any use of a taxable item that subjects the taxable item to the sales tax under the provisions of Section 151.154 (Resale Certificate: Liability of Purchaser), the use or other consumption of the taxable item that subjected the taxable item to the tax is consummated at the place where the taxable item is stored or kept at the time of or just before the use or consumption.(j)
The sale of services delivered through a cable system is consummated at the point of delivery to the consumer.(k)
The sale of garbage or other solid waste collection or removal service is consummated at the location at which the garbage or other solid waste is located when its collection or removal begins.(l)
Repealed by Acts 2007, 80th Leg., R.S., Ch. 1266, Sec. 15(4), eff. September 1, 2007.(m)
If there is no place of business of the retailer because the comptroller determines that an outlet, office, facility, or location contracts with a retail or commercial business to process for that business invoices or bills of lading and that the outlet, office, facility, or location functions or exists to avoid the tax imposed by this chapter or to rebate a portion of the tax imposed by this chapter to the contracting business, a sale is consummated at the place of business of the retailer from whom the outlet, office, facility, or location purchased the taxable item for resale to the contracting business.(n)
A sale of a service described by Section 151.0047 to remodel, repair, or restore nonresidential real property is consummated at the location of the job site.
Source:
Section 321.203 — Consummation of Sale, https://statutes.capitol.texas.gov/Docs/TX/htm/TX.321.htm#321.203 (accessed Apr. 20, 2024).
