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Texas Tax Code - TAX § 151.704. Sales Tax Absorption;  Criminal Penalty

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) Except as provided by Subsections (b) and (c), a retailer commits an offense if the retailer directly or indirectly advertises, holds out, or states to a customer or to the public that the tax is not part of the sales price payable by the customer.

(b) A retailer may directly or indirectly advertise, hold out, or state to a customer or to the public that the retailer will pay the tax for the customer if:

(1) the retailer indicates in the advertisement, holding out, or statement that the retailer is paying the tax for the customer;

(2) the retailer does not indicate or imply in the advertisement, holding out, or statement that the sale is exempt or excluded from taxation;  and

(3) any purchaser's receipt or other statement given to the customer listing the sales price paid or to be paid by the customer separately states the amount of the tax and indicates that the tax will be paid by the retailer.

(c) This section does not prohibit a utility from billing a customer in one lump-sum price including the utility sales price and the amount of the tax imposed by this chapter.

(d) An offense under this section is a misdemeanor punishable by a fine of not more than $500.

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Cite this article: FindLaw.com - Texas Tax Code - TAX § 151.704. Sales Tax Absorption;  Criminal Penalty - last updated January 01, 2024 | https://codes.findlaw.com/tx/tax-code/tax-sect-151-704/

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