Texas Taxation of Costs is a system used in the state of Texas to collect taxes on certain goods and services. It applies to both individuals and businesses. The taxes are collected by the Texas Comptroller of Public Accounts and are used to fund public services such as education, healthcare, and infrastructure. The types of Texas Taxation of Costs include sales and use taxes, motor vehicle taxes, franchise taxes, hotel taxes, severance taxes, and mixed beverage taxes. Sales and use taxes are imposed on the sale of most retail goods and services, motor vehicle taxes are applied to the sale of new and used cars, franchise taxes are paid by businesses that operate in the state, hotel taxes are imposed on hotel and motel stays, severance taxes are assessed on the extraction of certain natural resources, and mixed beverage taxes are applied to the sale of alcoholic beverages. Texas Taxation of Costs is a critical source of revenue for the state and helps to fund important public services.