Texas Issues Guidance on Garage Sales And Sales Tax

Wednesday, June 18th, 2014

 
 
A clothing rack at a garage sale.
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Texas
General

The Texas Comptroller recently issued guidance on how sales tax applies to garage sales.

Texas taxes sales of tangible personal property but does not tax occasional sales. Occasional sales include (1) one or two sales of taxable items during any twelve month period or (2) sales totaling up to $3,000 in a calendar year of items that the seller or the seller's family member originally acquired for personal use. Garage sales are usually occasional sales, either because the sellers only make two or fewer sales per year or because the sales total less than $3,000 and the items sold were acquired for personal use.

The occasional sales exemptions, however, do not apply to sales by groups or organizations that collect items to sell at a garage sale. They also do not apply to community-wide events produced by a third party, such as flea markets. In those situations, sellers must collect sales tax.

http://www.window.state.tx.us/taxinfo/taxpubs/tx94_437.pdf


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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