Tax News

CCH (cch.taxgroup.com) reports:

  A Texas Court of Appeals has affirmed a district court's order granting a brochure-fundraising firm's request for injunctive relief to prevent the Texas Comptroller from implementing a new rule that would require the firm to collect and remit sales tax on products sold through school fundraising activities.

  The firm considered its initial sales of fundraising items to school groups as separate from the ultimate sales of the items by the school groups to the end consumers. The firm took the position that its initial sales qualified for exemption (e.g., as sales for resale) and that the school groups were the actual sellers responsible for collecting and remitting any sales tax due on the items.