Texas Tax Code - Section 151.4171. Optional Reporting Method: Percentage-Based
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Texas Laws > Tax Code > Texas Tax Code - Section 151.4171. Optional Reporting Method: Percentage-Based
Section: 151.411 151.412 151.413 151.414 151.415 151.416 151.417 151.4171 151.418 151.419 151.420 151.421 151.422 151.423 151.424
§ 151.4171. OPTIONAL REPORTING METHOD:
PERCENTAGE-BASED. (a) In this section, "percentage-based
reporting method" means a method by which a taxpayer categorizes
purchase transactions according to standards specified in the
letter of authorization, reviews an agreed-on sample of invoices in
that category to determine the percentage of taxable transactions,
and uses that percentage to calculate the amount of tax to be
(b) The comptroller may authorize the holder of a direct
payment permit to use a percentage-based reporting method. The
authorized percentage must be used for a three-year period
specified by the comptroller, unless the authorization is revoked
by the comptroller.
(c) The comptroller may revoke the authorization to report
under this section if the comptroller determines that the
percentage being used is no longer representative because of a
(1) in law, including a change in the interpretation
of a law or rule; or
(2) in the taxpayer's business operations.
(d) The decision of the comptroller to deny or revoke
authorization under this section is not appealable.
(e) In deciding whether to authorize reporting under this
section, the comptroller may categorize transactions by dollar
amount, by type of taxable item purchased, by the purpose for which
the taxable item will be used, or by other standards appropriate to
the taxpayer's operations.
(f) The comptroller by rule may specify additional
procedures that must be followed and conditions that must be met
before the comptroller authorizes a taxpayer to report under this
Added by Acts 1999, 76th Leg., ch. 457, § 2, eff. Oct. 1, 1999.
Last modified: August 11, 2007