Deadline for Texas TV, Internet, and Telecommunications Service Providers

The Texas Comptroller has announced April 1, 2019, is the deadline for providers of cable television, internet access, or other telecommunications services to submit a refund request for tax paid in 2018 on qualifying purchases.  

The refund opportunity for these purchases is the 6.25% of paid Texas state sales and use tax and is part of an annual incentive under Texas Administration Code Rule 3.345.

Qualifying Purchases

A qualifying purchase is tangible personal property that is purchased, leased or rented by a provider or its subsidiary and is directly used or consumed by the provider or subsidiary in or during any of these activities:

  • Distribution of cable television service
  • Provision of internet access service
  • Transmission, conveyance, routing, or reception of telecommunications services

The provider or its subsidiary must have paid Texas state sales and use tax in the calendar year immediately preceding the calendar year in which the request for refund is submitted.

Other Considerations

Refunds are capped at $50 million for all qualifying taxpayers. If qualifying claims total greater than $50 million, refunds will be made on a pro rata basis.

The provider or its subsidiary can’t claim special property tax benefits for economic development under Tax Code Chapter 313, Subchapter B on the same tangible personal property submitted for this refund claim.

We’re Here to Help

If you have any questions about submitting refunds, or if you’d like more information about how this refund could potentially help your business, contact your Moss Adams professional or email statetax@mossadams.com.