Tax Policy News

Current cigarette and tobacco products non-retailer permits expire Feb. 28, 2022.

The Comptroller's office mailed renewal packets with preprinted applications to all cigarette, cigar and/or tobacco products manufacturers, importers, distributors, bonded agents, and wholesalers to renew their cigarette and tobacco products non-retailer permits for March 1, 2022, through Feb. 28, 2023.

Non-retailers should review the preprinted information, make any corrections, sign the renewal form and return all pages of the packet (and any other documentation) with the applicable permit fee to our office by the date printed on the application form.

A $50 late filing fee will be assessed on non-retailer renewals postmarked after Feb. 28, 2022.

If you did not receive your packet, call 800-862-2260 to request one.

The 2021 annual insurance premium and maintenance tax reports and payments for licensed insurance companies and miscellaneous organizations (such as HMOs) are due on or before March 1, 2022.

Annual insurance premium tax reports and payments for Texas licensed surplus lines agents and agencies, and for entities required to report unauthorized insurance premium taxes, are also due on or before March 1, 2022.

As of January 2021, taxpayers no longer received a paper tax report. Instead, taxpayers receive an email reminder about the filing deadline. Email reminders were sent in January 2022.

For any questions regarding insurance tax reports, please contact us at [email protected].

For automobile policies effective from July 1, 2021, through Dec. 31, 2021, property and casualty insurance companies authorized by the Texas Department of Insurance to write automobile insurance as described in Insurance Code, Art. 5.01(e) must report and pay the Motor Vehicle Crime Prevention Authority Fee on or before March 1, 2022.

Companies licensed to write automobile coverage must file the form even if no fee is due. Refer to Form 25-107, Insurance Motor Vehicle Crime Prevention Authority Semi-Annual Fee Report - July through December (PDF) and our Insurance Taxes Frequently Asked Questions webpage for additional information.

Beginning January 2022, for reports due March 1, 2022, the Comptroller’s office will no longer mail Form 25-107 or Form 25-106. These forms can be accessed online on our Texas Insurance Tax Forms webpage.

Taxpayers will no longer receive a statement showing their available credits, including any guaranty association assessment credits, Texas Windstorm Insurance Association (TWIA) credits, or Certified Capital Company (CAPCO) credits that may be applied to their annual premium tax. The Comptroller’s office has moved all insurance filings to an electronic format, and information will automatically populate for taxpayers filing their reports electronically. If you have requested a hardship exemption from filing electronically and plan to file a paper return, but are unable to calculate your credit amount, you may contact the Revenue Accounting Division at 800-531-5441, ext. 34276 for the amount of your available credit.

After the first of the year, gym parking lots tend to fill up as many Texans embrace one of the most popular New Year’s resolutions: getting healthy. If you share that resolution for 2022, read on for some taxability information on gym memberships; personal trainers; and vitamins, minerals, and dietary supplements.

Gym Memberships

Initiation and membership fees to gyms, athletic clubs, health clubs, and physical fitness or studio centers are taxable as an amusement service.

Live Instructional Studio Classes

Live group training classes for a sport or athletic discipline that are instructional in nature are not taxable. This includes training classes in which sessions are offered at a set time each week and instruction, guidance, and feedback are provided by a trainer or instructor during the classes. Live virtual group training sessions that meet these qualifications are also not taxable as an amusement service. However, recorded sessions offered by gyms, athletic clubs, health clubs, physical fitness or studio centers are taxable.

Some examples of nontaxable group training classes could include:

• Cycling.
• Jazzercise.
• Pilates.
• Yoga.
• Zumba.

Personal Trainers

Personal training that is a separately stated charge or fee from the spa, health/fitness club membership charge or fee is not taxable as an amusement service when:

• It is personal, one-on-one training; and
• The personal trainer directs the client through the program, rather than just designing the program and providing instruction on how to use the equipment.

Virtual personal training sessions that meet these criteria are also not taxable.

Vitamins, Minerals and Dietary Supplements

Sales tax is not due on the sale of vitamins, minerals, and dietary supplements.

Dietary supplements:

• Contain one or more vitamins, minerals, herbs, botanicals, amino acids, or substances that supplement daily dietary intake;
• Are not represented as "food or the sole item of a meal or diet" (such as meal replacements); and
• Are labeled as "dietary supplements" or "supplements."

Even if a product does not meet these criteria, it may still be considered a nontaxable dietary supplement if the product is labeled, or required to be labeled, with a Supplement Facts panel by the Food and Drug Administration.

More Information

• Texas Tax Code Section 151.313 – Health Care Supplies
• Rule 3.284 – Drugs, Medicines, Medical Equipment, and Devices
• Rule 3.298 – Amusement Services
• State Tax Automated Research system document 9801164L

The Comptroller’s office proposed the following rules for public comment through the Texas Register:

Franchise

State and Local Sales and Use Tax

To see the latest items added to our State Tax Automated Research (STAR) system, click New Documents in the blue menu bar on the STAR home page.

The Monthly Updates Search Form defaults to the current month and "All Taxes." Use the pull-down menu to choose a different month or a particular tax. Selecting "All Taxes" brings up the documents organized by tax type.

The Taxes webpage has links to:

• All Texas taxes and fees.
• Resources for taxpayers.
• Filing and paying taxes.
• Tax laws and rules.

Our Account Update Tools make it easy for you to:

• Change your address.
• Add a location.
• Close a location.
• Change return/email notifications.

The Comptroller’s office offers video tutorials on filing and paying sales tax through Webfile. View them on our Video Tutorials webpage.

Our office also offers virtual Sales and Use Tax Seminars conducted via Webex Events. New taxpayers are especially encouraged to attend these overviews of tax responsibilities for buyers, sellers, and service providers. For more information, visit the Taxpayer Seminars webpage.

Visit our Tax Training Resources webpage to:

• Find out more about our training resources.
• Register for upcoming webinars.
• View the Podcast and Webinar Archive sections for previous recordings.

The Practitioners’ Corner is a one-stop resource for information about filing and paying taxes, links to tax research sources and searchable databases.

• Tax Due Dates
• Holiday Schedule