In her August newsletter, the Comptroller discusses what type of location qualifies as a place of business, with an emphasis on procurement companies and purchasing offices. The determination of a place of business has a significant impact on local sales tax collection. The Comptroller concludes that a third-party procurement company or purchasing office that operates under an agency agreement with an entity to process and consolidate orders is not a bona fide place of business for the purpose of determining which local sales and use taxes are due on taxable items sold by the contracting seller.
The newsletter can be reviewed on the Comptroller’s website. http://www.cpa.state.tx.us/taxinfo/taxpnw/tpn2009/tpn908.html