When a seller inside the City of Austin ships taxable items to a delivery address in Travis County that's outside the Austin MTA boundary, what local tax rate applies?

Plain-English summary

A seller located inside the City of Austin asked about the correct sales tax rate when shipping or delivering taxable items to a location in Travis County that lies OUTSIDE the Austin Metropolitan Transit Authority (MTA) boundary. The Comptroller explained that in that situation, the seller collects 7.25% total -- 6.25% state tax plus 1% City of Austin tax -- with the 1% Austin MTA transit tax dropped, following the Comptroller's own Guidelines for Collecting Local Sales and Use Tax (see the "Collecting Sales Tax for Transit Authorities" section). To help identify which deliveries qualify, the letter notes that the ONLY unincorporated area of Travis County that falls INSIDE the Austin MTA boundary is Commissioner Precinct 2 (north and northwest Travis County) -- so most unincorporated Travis County deliveries are outside the MTA and get the lower, MTA-free rate. Sellers unsure about a specific address can call the Austin MTA directly for boundary confirmation.

What this means for you

Austin-area sellers shipping or delivering within Travis County

Don't assume the full Austin-area combined rate (state + city + MTA) applies to every Travis County delivery. If the delivery address is outside the Austin MTA boundary, drop the 1% MTA tax and collect only 7.25% (6.25% state + 1% City of Austin). Most of unincorporated Travis County is outside the MTA boundary -- only Commissioner Precinct 2 (north/northwest Travis County) is inside it.

Businesses uncertain whether a delivery address is inside the Austin MTA

Call the Austin MTA directly for boundary confirmation if the Commissioner Precinct 2 rule of thumb doesn't clearly resolve your situation.

Common questions

Q: What's the sales tax rate for a delivery from an Austin seller to a Travis County address outside the Austin MTA?
A: Per this letter, 7.25% total -- 6.25% state plus 1% City of Austin, with the 1% MTA tax dropped.

Q: Which unincorporated part of Travis County is inside the Austin MTA boundary?
A: Per this letter, only Commissioner Precinct 2 (north and northwest Travis County).

Q: How can a seller confirm whether a specific address is inside or outside the MTA boundary?
A: Per this letter, by contacting the Austin MTA directly for boundary information.

Citations and references

Guidance:

• Comptroller's Guidelines for Collecting Local Sales and Use Tax, "Collecting Sales Tax for Transit Authorities"

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9703452L

Original ruling text

March 26, 1997

Dear ***:

Thank you for your letter concerning taxable items delivered outside the Austin
MTA.

A seller located inside the City of Austin that ships or delivers taxable items
to a location in Travis County that is outside the Austin MTA collects 7.25%
(6.25% state and 1% City of Austin) sales tax. As explained in the enclosed
Guidelines for Collecting Local Sales and Use Tax, the 1% Austin MTA tax is
dropped. See the section titled "Collecting Sales Tax for Transit
Authorities."

The only unincorporated area in Travis County that is inside the Austin MTA
boundary is Travis County Commissioner Precinct 2 (north and northwest Travis
County). If this is not enough information to determine whether ***
is outside the Austin MTA boundary, the Austin MTA can be reached at 369-6005
for boundary information.

This opinion is based on the facts you submitted. Other facts, though similar,
may yield different results.

You may call me toll free at 1-800-531-5441, ext. 5-0030. The direct line is
512/475-0030. You may also write to Tax Policy, Comptroller of Public
Accounts.

Sincerely,

David Somerville
Tax Policy Division