Bulletin: TX000001

Date:
March 15, 1988
To:
All Texas Issuing Offices
RE:
Sales Tax: Effective April 1, 1988

Dear Associates:

The comptroller's office has been in the process of analyzing the applicability of sales tax to the title industry. By its guidelines effective commencing April 1, 1988 you must collect and remit to the Comptroller's office sales tax on many items. You must also secure a sales tax permit.

Taxable items include the following:

  • Abstractor's Information. Any abstract services will be taxable, including abstracts, abstractor's certificates, nothing further certificates, abstractor's letters, title runs, take-off services, city planning letters, and foreclosure certificates.

  • Tax searches for which you charge the consumer will also be taxable unless the charge is solely for a tax certificate issued by the Tax Assessor-Collector's office and unless you make charge only for reimbursement of your costs and do not increase the charge. If you increase the charge or if you rely upon a tax service for such tax search, you must collect sales tax on the full amount you charge the consumer.

  • Plant Information. Any charges you make for allowing others to use you Plant is fully taxable.

  • Charges for copies of documents are taxable.

Items not taxable include the following:

  • Title insurance premiums;

  • Reimbursement for delivery fees;

  • Charges for preparation of 1099 forms;

  • Escrow fees;

  • Long distance phone call reimbursement;

  • Joint Plant participation costs;

  • Recording fees.

If you have any questions concerning the application for tax permit, please contact the Comptroller's office for further details.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
TX 5.16 Escrow Closings
Exceptions Manual:
None
Forms:
None