Sales & Use Tax

Sales and Use Taxes IconTexas imposes a state sales tax on all retail sales, leases, and rentals of most goods, as well as taxable services. Texas cities, counties, transit authorities, and special purpose districts have the option of imposing an additional local sales tax.Texas also imposes a use tax when purchasers buy taxable goods and services for use in Texas and the seller does not charge Texas sales tax or does not charge the correct amount of Texas sales tax. The use tax rates are the same as the state and local sales tax rates. Sales and use taxes are collected by the state and forwarded to the City of Sealy on a monthly basis.

 

  • What is the maximum sales tax rate that can be charged on a sale of taxable goods or services in Texas?

 

The sales tax rate charged by the state on the sale of each taxable item in the state is 6.25% of the sales price of the taxable item. (Tex. Tax Code Sec. 151.051) In addition to the state’s 6.25% sales tax rate, local taxing entities (cities, counties, transit authorities, and special purpose districts) can collectively claim an additional 2.00% tax rate, for a total maximum tax rate of 8.25% in any given location. (Tex. Tax Code Sec. 321.101(f)) Whether or not the sales tax rate is “maxed out” in a given city depends on what sales taxes have been adopted by the city, in addition to what sales taxes have been adopted by the other taxing entities that overlap with the city.

   

The breakdown of the sales tax rate within the city limits of Sealy is as follows:

 State of Texas

 6.25%

 Austin County

 0.50%

 City of Sealy

 1.50

 Total Rate

 8.25%


  • What is the sales tax for general revenue?

 

The sales tax for general revenue is a tax that may be levied by a city on all taxable items sold in the city. The revenues from the tax may be spent on almost any lawful purpose of the city. Within the city limits of Sealy, the sales tax rate for general revenue is currently set at 1.00%.

 

  • What are sales taxes for dedicated purposes?

 

All city sales taxes, other than the sales tax for general revenue, are considered sales taxes for dedicated purposes. As the name implies, each of these taxes may only be spent on certain, or dedicated, items or projects. Cities may have a mix of different dedicated taxes, in addition to the general revenue sales tax, so long as the total tax rate in the city does not exceed 8.25%.

 

Examples of dedicated sales taxes include those for economic development, street maintenance, venue districts, crime control and prevention districts, and property tax relief.

 

Currently, the City of Sealy has a dedicated sales tax for economic development, and that tax rate is set at 0.50%.