Selling your work in Texas? Here's how the sales tax permit works

This is Dumb Dope's own guide, written from the Texas Comptroller's public pages. It isn't legal or tax advice. For your situation, ask the Comptroller or a tax professional.

Start with the question the state asks

The Texas Comptroller's permit page says to complete the application if "you are engaged in business in Texas" and "you sell or lease tangible personal property in Texas," or "you sell taxable services in Texas." Tangible personal property is a plain way of saying things you can touch: a print, a mug, a zine, a tote bag.

So if you regularly sell your work in Texas, read that page before your next market. It doesn't spell out how it applies to a one-off table at a craft fair, and we aren't going to guess. If your case is unclear, call or write the Comptroller and ask.

What the tax is

Texas charges a 6.25 percent state sales and use tax. Cities and other local jurisdictions can add up to 2 percent, so the highest combined rate is 8.25 percent. The rate you collect depends on where the sale happens, and the Comptroller's site is where to confirm it.

How to apply

Apply online through the Comptroller's eSystems, which you reach from the permit page. If you can't use the online application, there's a paper version, Form AP-201. The Comptroller says to "allow 2-3 weeks to receive your permit," so apply before the season starts, not the week of your first big market. The page we read doesn't mention an application fee, so check the application itself before you assume anything.

You'll be asked about your business and what you sell. The application uses NAICS codes, a government list that classifies kinds of business. The Census Bureau has a lookup tool, linked from the permit page.

What happens after you have a permit

Once you're approved, the Comptroller notifies you by letter whether you file monthly or quarterly. Quarterly reports are due April 20 (for January to March), July 20 (April to June), October 20 (July to September) and January 20 (October to December). Monthly reports are due on the 20th of the month after the one you're reporting. If a due date lands on a weekend or legal holiday, the next working day is the due date.

A simple habit that helps

Keep a running list of what you sold, when and for how much, from day one. Whatever the Comptroller needs from you later, that list is where you'll find it.

Selling your work is a big step. If you haven't yet, add your profile to the Dumb Dope directory so people can find what you make.

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