Did Texas require out-of-state circuses and other itinerant vendors operating in the state to register and collect sales tax?

Plain-English summary

The Comptroller answered yes when asked whether Texas collected tax from itinerant vendors such as out-of-state circuses. The letter said local sales-tax Rules 3.374 and 3.424 defined itinerant vendors and stated their collection responsibilities.

The letter also said enforcement officers regularly contacted itinerant vendors, specifically including out-of-state circuses, and required them to obtain sales-tax permits and collect tax. Although the requester asked whether additional legislation was needed, the Comptroller said it was not needed at that time.

What this means for you

An out-of-state business did not escape Texas collection duties merely because it traveled from place to place. Under this 1991 letter, circuses and similar itinerant vendors operating in Texas had registration and tax-collection responsibilities.

Common questions

Did the rule apply to out-of-state circuses? Yes. The letter specifically said Texas regularly required them to register and collect tax.

Were itinerant vendors expected to obtain permits? Yes.

Did the Comptroller ask for new legislation? No. The letter said no additional legislation was needed at that time.

Citations and references

• 34 Tex. Admin. Code Rule 3.374 — local sales-tax responsibilities of itinerant vendors
• 34 Tex. Admin. Code Rule 3.424 — local sales-tax responsibilities of itinerant vendors

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9107182L

Original ruling text

July 3, l99l

Dear **:

In your letter of June 24, l99l, you asked if we collect tax from itinerant
vendors such as out-of-state circuses. The answer is "yes." Our local sales tax
rules 3.374 and 3.424 define itinerant vendors and set out their
responsibilities to collect tax. Furthermore, enforcement officers regularly
contact itinerant vendors and require them to obtain sales tax permits.
Specifically, we regularly contact out-of-state circuses and require them to
register and collect tax.

You also asked if additional legislation was necessary. While itinerant vendors
will always present some enforcement problems by their very nature, no
legislation is needed at this time.

I or Mike Doyle, Director of Tax Administration, will be happy to meet with you
to discuss your concerns. And, thank you for offering to assist my office
concerning the enforcement problems.

Sincerely,

JOHN SHARP
Comptroller of Public Accounts

cc: Capitol Office