Sales Tax Refunds - Frequently Asked Questions
1. What does “toll the statute of limitations” mean?
Generally, a person or business has four years from the date the tax was originally due and payable to the state to claim a refund for tax that has been paid in error. When a refund claim tolls the statute of limitations, that means the “clock stops running” for the reasons or grounds stated in a refund claim that includes all required elements. The Comptroller may send you a notice that asks for all information that supports your refund claim, including documents such as invoices and cancelled checks, and you must provide this information within 30 days of the notice.
2. What is the purpose of Form 01-136, Credit Memo Acceptance (PDF, 30KB)?
The seller of a taxable item who collected sales tax in error must refund the tax to the purchaser before submitting a refund claim to the Comptroller’s office. The seller can either refund the tax or give the purchaser credit for the tax paid in error. The credit memo acceptance form states that the seller gave the purchaser a credit on their account (instead of refunding the tax directly). The purchaser acknowledges the credit by signing the form. With this documentation, the Comptroller’s office can then process the refund request for the seller.
3. What do “assignor” and “assignee” mean on Form 00-985, Assignment of Right to Refund (PDF, 15KB)?
The assignor is the entity that collected the sales tax and remitted it to the Comptroller’s office. The assignee is the customer who paid the sales tax on the purchased item. A separate assignment of right to refund form is needed for each vendor for which you are claiming a refund.
4. What are the requirements for a predominant use study when a person is seeking a refund claim related to the purchase of natural gas or electricity? (See Rule 3.295(f)(1).)
- Twelve consecutive months of utility usage must be a part of the study.
- The study must establish that the electricity the meter measures is predominantly (more than 50 percent) used in a tax-exempt manner.
- The study must be certified by a registered engineer or a person with an engineering degree from an accredited engineering college.
- The owner of the business must certify that all items using natural gas or electricity (depending on which utility is covered by the study) are listed and that the hours of use for each item are correct.
- The certification of both the engineer and the owner must appear on the face of the study.
5. Taxpayers must identify the local taxing jurisdictions to which tax was paid in error for a refund claim. How can taxpayers locate these jurisdictions?
Use the Sales Tax Rate Locator to find taxing jurisdiction information for a physical address.
6. How can I verify an agricultural or timber registration number?
Use our Ag and Timber Number search.
7. How can I find taxpayer number information?
Use our sales tax permit search.
8. How can I verify that an organization is exempt on the records of the Comptroller?
Use our tax-exempt entity search.
9. How long will it take to get my refund?
The time required to verify, process and pay your refund will vary depending on the size and complexity of your refund request. You can help reduce the amount of time it takes to verify your claim by providing all documentation and information requested by the specified deadline.
10. How do I package and mail multiple amended returns?
If you are amending multiple periods, submit all of your returns in one envelope to the following address:
Texas Comptroller of Public Accounts
Attn: Sales and Motor Vehicle Tax Refunds
111 E. 17th Street
Austin, TX 78774-0100