Part 1.
COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 3.
TAX ADMINISTRATION
Subchapter O. STATE SALES AND USE TAX
34 TAC §3.337
The Comptroller of Public Accounts adopts the repeal of existing §3.337,
concerning gratuities without changes to the proposal as published in the
November 11, 2005, issue of the
Texas Register
(30
TexReg 7382).
The existing §3.337 is being repealed so that the content can be updated
in a new section §3.337 to incorporate policy clarifications regarding
the requirements to exclude mandatory gratuities from the sales price of taxable
items and the record-keeping requirements in relation thereto, as well as
to update definitions of relevant terms.
No comments were received regarding adoption of the repeal.
This repeal is adopted under Tax Code, §111.002, which provides
the comptroller with the authority to prescribe, adopt, and enforce rules
relating to the administration and enforcement of the provisions of Tax Code,
Title 2.
The repeal implements Tax Code §151.007(c)(7).
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on January 27, 2006.
TRD-200600455
Martin Cherry
Chief Deputy General Counsel
Comptroller of Public Accounts
Effective date: February 16, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 475-0387
34 TAC §3.337
The Comptroller of Public Accounts adopts new §3.337,
concerning gratuities without changes to the proposed text as published in
the November 11, 2005, issue of the
Texas Register
(30 TexReg 7382).
The new section replaces the existing §3.337, which is being repealed
so that the content is updated to reflect policy clarifications regarding
the requirements to exclude mandatory gratuities from the sales price of taxable
items and the record-keeping requirements in relation thereto, as well as
to update definitions of relevant terms.
Qualified employees who perform services upon which gratuities are charged
are defined in subsection (a)(2), and the total direct compensation such employees
receive is defined in subsection (a)(4).
The requirements for mandatory gratuities that are and are not subject
to sales tax are identified in subsection (c).
Record-keeping requirements for mandatory gratuities disbursed to employees
are identified in subsection (d).
In addition to these policy clarifications, the new section has other changes
in form, style, and wording to help taxpayers understand when to collect tax
on gratuities. These changes are for the purpose of clarity.
No comments were received regarding adoption of the new section.
The new section is adopted under Tax Code, §111.002, which
provides the comptroller with the authority to prescribe, adopt, and enforce
rules relating to the administration and enforcement of the provisions of
Tax Code, Title 2.
The new section implements Tax Code §151.007(c)(7).
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on January 27, 2006.
TRD-200600456
Martin Cherry
Chief Deputy General Counsel
Comptroller of Public Accounts
Effective date: February 16, 2006
Proposal publication date: November 11, 2005
For further information, please call: (512) 475-0387
Subchapter D. CLAIMS PROCESSING--PAYROLL
Chapter 5.
FUNDS MANAGEMENT (FISCAL AFFAIRS)