Discussion:Texas Sales Tax for Suveyor
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CowTownCPA (talk|edits) said: | 30 August 2007 |
| I have just been engaged by a client who performs surveys in Texas, Oklahoma and Kansas. The business is one year old and they have never collected or paid sales tax. Preliminary research seems to indicate that surveying activities in Oklahoma and Kansas are not subject to sales tax. However, Texas law specifically includes surveys as one of six real estate related services that is subject to sales tax. Exceptions include surveying for the construction of buildings where the builder will collect sales tax. There also seem to be some very intricate exceptions regarding oil and gas surveying, i.e. some activities are taxable and some are not. The survey process includes much data gathering, drafting, report composition and service activities which would seem typically not to be subject to sales tax.
(1) Does anyone have a surveyor as a client who does both construction and oil & gas surveys? (2) If so, can you recommend any "rules of thumb" or sources I could utilize to insure their compliance? (3) Since they prepare their invioce by listing all of the various types of services performed, does anyone know if some of those services (such as the drafting) might be exempt while other services require the collection of sales tax? Any assistance, comments or sources would be greatly appreciated. Thanks. | |
Msmith7305 (talk|edits) said: | 30 August 2007 |
| If you would call the Tx Comptroller's office they would be glad to help. I have found them to be extremely helpful and accurate. They will also send you the relevant statute regarding their answer. | |
CowTownCPA (talk|edits) said: | 31 August 2007 |
| Thanks MSmith. I e-mailed and didn't get a response. I'll try the phone. I also have been in touch with the Texas Society of Professional Surveryors and they are apparently petitioning the legislature to clean up what seems to be a very messy law. I appreciate your response. | |
| August 31, 2007 | |
| Texas should get some credit for being very pro business and helpful. As opposed to IL and WI for example. | |
| 31 August 2007 | |
| try these links:
Surveying Services Issue: Whether staking the corners of a lot is a taxable survey or part of nontaxable new construction The taxpayer, a surveyor, staked the corners of vacant lots owned by a builder. The survey confirmed the boundaries of the properties, and the builder used the stakes as reference points when building the forms for the foundations. Further surveys were done to ensure that the foundations were properly placed and that the drainage on the property was correct. The taxpayer claimed that staking the lots' corners was not a taxable service but was instead nontaxable as a part of new construction. Taxable surveying services include determining or confirming the boundaries of real property or the location of structures and other improvements in relation to property boundaries. The surveying service would not be taxable if purchased by a builder or developer (acting as a contractor) when building a new residential structure. In such a case, the contractor must provide the surveyor with the appropriate documentation to prove the service was not taxable. Lot surveying services for nonresidential improvements are taxable, however, even if done in connection with new construction. (200301674L) (Then you can look @ 200301674L) | |
