Texas Taxes Tax Publications

How to Get a Refund or Credit for Sales Tax You Paid in Error
October 2003

If you don't have a sales tax permit...
If you paid tax in error and don't have a Texas sales tax permit, go to the person to whom you paid the tax and request a refund. For example, if you mistakenly pay tax when you buy nontaxable over-the-counter medication, go back to the store where you bought the item and ask for a refund of the tax.

Rather than refund the tax directly to you, the seller may elect to assign its rights to the refund to you. The seller may use the Assignment of Right to Refund (form 00-985).

The form is available online at http://www.window.state.tx.us/taxinfo/taxforms/01-forms.html, or from any Comptroller field office.

To claim your tax refund, send the required documentation and the seller's refund assignment to:

Sales Tax Refunds Verification Section
Comptroller of Public Accounts
111 E. 17th Street
Austin, Texas 78774-0100

We must receive the refund request with the assignment within four years of the 20th day of the month after the tax was paid to the seller.

If you have a sales tax permit...
If you have a Texas sales tax permit, there are three ways to get a refund of sales tax paid in error.

Ask the retailer
The fastest, easiest way to get a refund is to ask the retailer who collected the tax from you. If you bought an item for resale, you must give the retailer a properly completed resale certificate before they can give you a refund. If the purchase was exempt, you have to give the retailer an exemption certificate. Resale and exemption certificates (form 01-339) are available online at http://www.window.state.tx.us/taxinfo/taxforms/01-forms.html. After refunding the tax to you, the retailer can take a corresponding credit on their next sales and use tax return.

Claim a credit on your own sales tax return
If you are a retailer with your own sales and use tax permit, you can take a credit for tax paid in error by reducing the taxable sales or taxable purchases on your next sales and use tax return. For example, a manufacturer who paid tax in error on exempt equipment can take a credit by reducing taxable sales shown on the return by the purchase price of the equipment. Any credit for overpaid local taxes must be taken from the same city, county, special purpose district, or transit authority that was originally allocated the tax.

Request a refund from the Comptroller
If you have a sales or use tax permit, you can request a refund directly from the Texas Comptroller. To file a claim, send a signed refund request stating the amount to be refunded and the basis for the refund, and include a copy of the invoice or receipt showing the amount of tax you paid.

If you have more than ten invoices or receipts, you should provide a schedule of overpaid taxes. The schedule must show the reporting period (monthly or quarterly) for each purchase, the amount of state and local taxes for each city, county, special purpose district, and transit authority, and the identity of each retailer who collected the tax from you.

If you ask someone else (such as an accountant, attorney, or consultant) to file a refund request on your behalf, the Comptroller's office must have your written authorization before we can work with that person on your claim. An authorization form is available upon request.

You can use these methods of getting tax refunded only if your four-year statute of limitations has not expired.

Send refund requests along with supporting documentation to:

Sales Tax Refunds Verification Section
Comptroller of Public Accounts
111 E. 17th Street
Austin, Texas 78774-0100

For additional information regarding refund claims and statute of limitations see the June 2003 Special Notice on HB 2425.

If you have questions about a refund request or need a form, e-mail us at refundreq.revacct@cpa.state.tx.us or call toll free at 1-800-531-5441, extension 3-4545. The direct number in Austin is 512/463-4545.

Need More Assistance?
Email us at tax.help@cpa.state.tx.us.	Call us toll free.	Visit one of our local field offices.

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