Texas Software Maintenance Agreement
Description
How to fill out Software Maintenance Agreement?
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FAQ
Special districts are limited purpose local governments ? separate from cities and counties. Within their boundaries, special districts provide focused public services such as fire protection, sewers, water supply, electricity, parks, recreation, sanitation, cemeteries, and libraries.
However, it is worth noting that the Texas tax code exempts 20% of the total charge for sales of certain software and digital services, which essentially means that only 80% of a taxable SaaS sale is subject to the state's sales tax.
There are a wide range of special purpose districts in Texas, including independent school districts, hospital districts, river authorities, and water districts.
There are 432 special purpose districts (SPDs) that impose sales and use tax. These SPDs and their appropriate tax rates are shown below. The SPD tax is collected in addition to state tax and any other local taxes (city, transit, and county) when applicable. Special Purpose Districts Listed by County.
Advantages: Special districts tailor services to meet local needs. Counties and cities must protect their resi- dents' health, safety, and welfare and, thus, must provide many services, regardless of citizen demand. Special districts, however, only provide the services that their communities desire.
Texas imposes a 6.25 percent state sales and use tax on all retail sales, leases and rentals of most goods, as well as taxable services.
Sec. 151.351 states that the first 20% of the sale price of a data processing service is not subject to sales tax laws in Texas.
Charges for computer program repair, maintenance, or restoration by a person who sold the computer program are taxable. Computer program repair, maintenance, or restoration includes error correction, technical fixes, and technical support, whether provided over the Internet or over the phone.