Texas Comptroller Manual of Accounts - Fiscal 2024
Revenue Object 3102 – Limited Sales and Use Tax

(1) 6.25% of retail sale price of tangible personal property and taxable services. Taxpayer may deduct 1/2 of 1% of the tax due as reimbursement for collection costs. 

(2) Tax on the sale, storage and use of sporting goods is allocated to the Historical Commission (7%) and Parks and Wildlife (93%). Per Parks and Wildlife Code Chapters 11 and 24, the allocations to Parks and Wildlife are deposited to the following in amounts as appropriated:

• GR Account 0064;
• GR Account 0467;
• GR Account 5150; and
• GR Account 5004.

(3) A surcharge is imposed on the retail sale, lease or rental of new or used heavy duty equipment (bulldozers, cranes, tractors, etc.) in an amount equal to 1.5% of the sale price or lease or rental amount.

(4) A surcharge is imposed on the storage, use or other consumption of new or used equipment at a rate of 2% on the sales price or lease or rental amount.

(5) 2% of sales tax on fireworks allocated to GR Account 5066 - Rural Volunteer Fire Department Insurance.

(6) Beginning September 1, 2017 through August 31, 2032,  $2.5 billion in sales tax is allocated to the State Highway Fund (0006) each fiscal year. This amount is allocated from revenue above the first $28 billion in sales tax deposited to General Revenue (transfer code 7925/3925).

(7) Proceeds of sales tax on horse feed, supplements, tack, bedding and grooming supplies, and other taxable expenditures directly related to horse ownership, riding, or boarding are deposited to Fund 0876 (up to $50 million or the biennial appropriation to the Racing Commission, whichever is greater).

(8) Sales tax revenue collected by marketplace providers on sales of taxable items made through the marketplace under Section 151.0242, Tax Code (store, website, software application, or catalog) deposited to the Tax Reduction and Excellence in Education Fund 0305.

(9) Each fiscal year $100,000 is deposited to GR Account 5193 – Texas Music Incubator.

The sales tax collected by state agencies is explained in Revenue Code 3103. The sales tax on motor fuel lubricants is explained in Revenue Code 3010.

On or before the 20th day of the month following the end of each calendar month. The taxpayer can file quarterly if they owe less than $500 for a calendar month or $1,500 for a calendar quarter. Taxpayer may estimate taxes and prepay quarterly per Tax Code 151.424.

Sporting Goods Sales Tax
Per H.B. 706, 73rd Leg., R.S. an amount of sporting goods sales tax equal to 50 cents per 1,000 cigarettes was deposited to GR Account - State Parks (No. 0064) and an equal amount to GR Account - Texas Recreation and Parks (No. 0467).

Beginning fiscal 1996, sporting goods sales taxes were credited to the Parks and Wildlife Department up to $32 million annually.

H.B. 12, 80th Leg., R.S. replaced the $32 million the sporting goods tax allocation and replaced with percentage allocations to TPWD accounts.

S.B. 1366, 84th Leg., R.S. removed percentage allocations and replaced with not-to-exceed appropriations. H.B. 158, 84th Leg., R.S. added new TPWD use of sporting goods sales tax.

Allocation to Parks and Wildlife changed from 94% to 93% and allocation to Historical Commission changed from 6% to 7% by H.B. 1422, 86th Leg., R.S. 

S.J.R. 24, 86th Leg., R.S., appropriated all of the sporting goods sales tax revenue to Texas Parks and Wildlife and Texas Historical Commission.

Other Changes
H.B. 888, 67th Leg., R.S., added quarterly payment effective 1-1-82.

Amended by S.B. 985, 68th Leg., R.S.

Rate change by H.B. 122, 68th Leg., 2nd C.S., effective 10-2-84.

Rate increase from 4.125% to 5.25% by H.B. 79, 69th Leg., 3rd C.S., for the period 1-1-87 to 9-1-87.

Rate changed from 5.25% to 6% by H.B. 61, 70th Leg., R.S.

Rate changed from 6% to 6.25% by H.B. 6, 71st Leg., 6th C.S.

(3) Added by S.B. 5, 77th Leg., R.S. Amended by H.B. 1365, 78th Leg., R.S.

(4) Added by H.B. 1365, 78th Leg., R.S.

Abolishment of (3) and (4) extended from 9-1-08 to 9-1-10 by H.B. 2481, 79th Leg., R.S. Extended from 9-1-10 to 8-31-13 by S.B. 12, 80th Leg., R.S. Extended from 8-31-13 to 8-31-19 by H.B. 1796, 81st Leg., R.S. H.B. 3745, 86th Leg., R.S. extended surcharge expiration from 8-31-19 to the date the commission publishes the notices required under Health and Safety code 382.037.

S.B. 761, 84th Leg., R.S. added allocation of 2% of sales tax on fireworks to GR Account 5066 - Rural Volunteer Fire Department Insurance.

H.B. 7, 84th Leg., R.S. decreased TERP surcharge on heavy equipment from 2% to 1.5%.

Allocation to the State Highway Fund (0006) proposed by S.J.R. 5, 84th Leg., R.S. and adopted by voters November 3, 2015. 

(7) horse-related sales tax added by H.B. 2463, 86th Leg., R.S.

(8) added by H.B. 3, 86th Leg., R.S.

(9) $100,000 allocation to GR account 5193 added by S.B. 609, 87th Leg., R.S.

Effective 9/1/2021, H.B. 3745, 86th Leg., R.S. changed deposit of surcharge (items 3 and 4) from GR account 5071 to the new Texas Emissions Reduction Plan Trust Fund 1201 outside of the state treasury.