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Texas Tax Code - Section 151.4171. Optional Reporting Method: Percentage-Based

Legal Research Home > Texas Laws > Tax Code > Texas Tax Code - Section 151.4171. Optional Reporting Method: Percentage-Based

§ 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 
reported.
	(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 
change:
		(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 
section.

Added by Acts 1999, 76th Leg., ch. 457, § 2, eff. Oct. 1, 1999.            

Last modified: August 11, 2007