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.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.22(a), eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 810, Sec. 1, eff. Oct. 1, 1989; Acts 1991, 72nd Leg., ch. 705, Sec. 26, eff. Sept. 1, 1991; Acts 2001, 77th Leg., ch. 370, Sec. 2, eff. Aug. 1, 2002; Acts 2003, 78th Leg., ch. 209, Sec. 55, eff. Oct. 1, 2003; Acts 2003, 78th Leg., ch. 1155, Sec. 2, 3, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1310, Sec. 115, eff. July 1, 2004.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 23.001(83), eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 1266 (H.B. 3319), Sec. 11, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 1266 (H.B. 3319), Sec. 15(4), eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 1360 (S.B. 636), Sec. 5, eff. June 19, 2009.
Acts 2013, 83rd Leg., R.S., Ch. 1342 (S.B. 997), Sec. 1, eff. June 14, 2013.
Acts 2019, 86th Leg., R.S., Ch. 182 (H.B. 1525), Sec. 3, eff. October 1, 2019.
Acts 2021, 87th Leg., R.S., Ch. 569 (S.B. 477), Sec. 6, eff. October 1, 2021.

Source: Section 321.203 — Consummation of Sale, https://statutes.­capitol.­texas.­gov/Docs/TX/htm/TX.­321.­htm#321.­203 (accessed Jun. 5, 2024).

321.001
Short Title
321.002
Definitions
321.003
Other Portions of Tax Applicable
321.004
References to Sales or Use Tax
321.101
Tax Authorized
321.102
Effective Dates: New Tax, Tax Repeal, Boundary Change
321.103
Sales Tax
321.104
Use Tax
321.105
Residential Use of Gas and Electricity
321.106
Fire Control District Tax
321.107
Administration of Local Sales and Use Taxes Imposed by Other Governmental Entities
321.108
Municipal Crime Control and Prevention District Tax
321.201
Computation of Sales Taxes
321.202
Method of Reporting: Retailers Having Sales Below Taxable Amount
321.203
Consummation of Sale
321.204
Computation of Use Tax
321.205
Use Tax: Municipality in Which Use Occurs
321.206
Incidence of Additional Municipal Sales and Use Tax
321.207
Local Tax Inapplicable When No State Tax
321.208
State Exemptions Applicable
321.209
Transition Exemption: General Purpose Sales and Use Tax
321.210
Telecommunications Exemption
321.301
Comptroller to Collect and Administer Taxes
321.302
Comptroller’s Reporting Duties
321.303
Sales Tax Permits and Exemption and Resale Certificates
321.304
Discounts for Prepayment and Tax Collection
321.305
Penalties
321.306
Comptroller’s Rules
321.307
Delinquent Taxes: Limitations
321.308
Seizure and Sale of Property
321.309
Suit for Tax Collection
321.310
Disapproval of Municipal Suit
321.311
Judgments in Municipal Suit
321.312
Retention of Certain Municipal Sales Taxes
321.401
Calling of Election
321.402
Deadlines After Petition
321.403
Time of Election
321.404
Ballot Wording
321.405
Official Results of Election
321.406
Frequency of Election
321.407
Election Contest: Notice
321.408
Election Contest: Delayed Effective Date
321.409
Combined Municipal Sales Tax Ballot Propositions
321.501
Trust Account
321.502
Distribution of Trust Funds
321.503
State’s Share
321.504
Amounts Retained in Trust Account
321.505
Interest on Trust Account
321.506
Use of Tax Revenue by Municipality
321.507
Use of Additional Municipal Sales and Use Tax
321.508
Pledge of Tax Revenue
321.509
Tax Powers of Municipality Not Limited
321.510
Reallocation of Municipal or Local Governmental Entity Tax Revenue
321.1025
Annexation to Certain Regional Transportation Authorities
321.1045
Imposition of Sales and Use Tax in Certain Federal Military Installations
321.1055
Imposition of Fire Control or Crime Control District Tax on the Residential Use of Gas and Electricity
321.2091
Transition Exemption: Additional Municipal Sales and Use Tax
321.3022
Tax Information
321.3025
Disposition of Amount Erroneously Collected
321.5025
Distribution of Trust Funds to Defunding Municipality

Accessed:
Jun. 5, 2024

§ 321.203’s source at texas​.gov