Sales Tax
The retailer serves as a Tax Collector
when it comes to the sales tax. The seller computes sales tax
as a percentage of the gross sales price (7.25% plus) and adds
it to the amount he (she) collects from the customers. The business
owner is an agent of the government who has a fiduciary responsibility
to collect the proper amount of tax and pay it over to the Taxing
Authority. If the business owner fails to properly serve as a
tax collector he will have to pay the tax himself (herself).
Again sales tax is based on gross sales price
- the largest number in the income statement "Profit & Loss
Statement". Even a start up business that has not year turned
a profit can pile up huge sales tax deficiencies. The Houston
Chronicle recently reported how Chips Mart on IH-45 recently went
out of business because of a sales tax problem.
Sales tax rules vary widely between industry
classifications. The rules are not complicated and can be learned
by surveying the industry. The State Comptrollers Office will
gladly send you a copy of the rules that apply to your industry.
Whatever you do, when you start a new business – learn the
sales tax rules and properly collect and pay the sales tax due.
Also, if you notice changes among your competition re sales tax
be sure to follow up with the State Comptrollers Office or you
business advisor to make sure you are not left holding the bag.
(See Payroll Tax Section for further discussion).
CALL NOW AND YOUR FIRST CONSULTATION IS FREE!
281-351-2688
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