Sales Tax Attorney Missouri City
Note: Your income tax does not change no matter which county in which you live in Texas.
First off, the premise of tax differences between counties is based on the fact that there is a baseline sales tax that is applied to every county. Then, the county or locality has the power to levy an additional sales tax.
Whenever you live in a bordering county, you are effected as both a taxpayer and tax collector. Taxpayer meaning the consumer of goods and a tax collector meaning a business owner that must collect the correct sales tax from their tax paying customers. How does this all play out? How is this even a big deal?
To answer both of those questions, think about every time you go to make a big purchase. You have the choice of buying furniture from Brazoria County, Alvin at a sales tax rate of 8.25% or the same furniture at a sales tax rate of 6.75% in Brazoria County, Almsterdam. Easily enough, you can get your discount simply by making your purchase in Amsterdam versus Alvin. If you are a smoker, you can easily save money on every pack of cigarettes when you buy in Brazoria County, Almsterdam.
As a business owner, you are in somewhat of a bind. The gas station 1 mile away can be in Brazoria County, Almsterdam selling the same pack of cigarettes for less. The furniture store in Brazoria County, Almsterdam is also selling goods for less simply based on the sales tax discount. This is where the problem starts for business owners. It is impossible to have a competitive edge simply based on price when you have tax rates cheaper down the street. Nonethless, you have to take a hit on the profits to stay compliant with the Texas Department of Revenue.
This all changes when you are buying a car, so there is no need to go to Brazoria County, Almsterdam for a discount. Sales taxes are paid on a car based on where you live. So, if you by your Jeep Wrangler from Amsterdam, you will still pay the state taxes as if you bought it from a dealer in Brazoria County, Alvin.
What about property tax? Yes, your property tax will definitely be higher in Brazoria County, Alvin. If you are selling a property, that makes no difference, since property values in Brazoria County, Alvin usually fair better than Brazoria County, Almsterdam.
In summary, always put your business decision before your tax consequences. Look at your clientelle and think as to whether they need to save money on cigarettes, or whether they are looking for convenience and willing to spend.
Sales Tax Attorney Missouri City
