Texas Tax Code 142.002 – Definitions
Terms Used In Texas Tax Code 142.002
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
In this chapter:
(1) “Agreement” means the Streamlined Sales and Use Tax Agreement as amended and adopted on November 12, 2002.
(2) “Certified automated system” means software certified under the agreement to calculate the tax imposed by each jurisdiction on a transaction, determine the amount of tax to remit to the appropriate state, and maintain a record of the transaction.
(3) “Certified service provider” means an agent certified under the agreement to perform all of the seller’s sales tax functions, other than the seller’s obligation to remit tax on the seller’s own purchases.
(3-a) “Model 1 seller” means a seller that has selected a certified service provider as the seller’s agent to perform all of the seller’s sales and use tax functions, other than the seller’s obligation to remit tax on the seller’s own purchases.
(3-b) “Model 2 seller” means a seller that has selected a certified automated system to perform part of the seller’s sales and use tax functions, but retains responsibility for remitting the tax.
(3-c) “Model 3 seller” means a seller that has sales in at least five member states, has total annual sales revenue of at least $500 million, has a proprietary system that calculates the amount of tax due each jurisdiction, and has entered into a performance agreement with the member states that establishes a tax performance standard for the seller. The term includes an affiliated group of sellers using the same proprietary system.
(4) “Sales tax” means a sales tax administered or computed under Chapter 151.
(5) “Seller” means a person who sells, leases, or rents personal property or services.
(6) “Use tax” means a use tax administered or computed under Chapter 151.