Texas Government Code 2310.405 – Local Sales and Use Tax Refunds
(a) To encourage the development of areas designated as readjustment zones, the governing body of a municipality through a program may refund its local sales and use taxes paid by a qualified business on:
(1) the purchase, lease, or rental of equipment or machinery for use in a readjustment zone;
(2) the purchase of material for use in remodeling, rehabilitating, or constructing a structure in a readjustment zone;
(3) labor for remodeling, rehabilitating, or constructing a structure in a readjustment zone; and
(4) electricity and natural gas purchased and consumed in the normal course of business in the readjustment zone.
(b) To promote the public health, safety, or welfare, the governing body of a municipality or county through a program may refund its local sales and use taxes paid by a qualified business or qualified employee.
Terms Used In Texas Government Code 2310.405
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- 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
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) The governing body of a municipality or county that is the governing body of a readjustment zone may provide for the partial or total refund of its local sales and use taxes paid by a person making a taxable purchase, lease, or rental for development or revitalization in the zone.
(d) A person eligible for a refund of local sales and use taxes under this section shall pay the entire amount of state and local sales and use taxes at the time the taxes would be due if an agreement for the refund did not exist.
(e) An agreement to refund local sales and use taxes under this section must:
(1) be written;
(2) contain an expiration date; and
(3) require that the person eligible for the refund provide to the municipality or county making the refund the documentation necessary to support a refund claim.
(f) The municipality or county shall make the refund directly to the person eligible for the refund in the manner provided by the agreement.