What Form 01-156 Is For
Form 01-156, Texas Use Tax Return, is the tax document you file when you owe use tax on items you purchased without paying Texas sales tax. Use tax is essentially the flip side of sales tax—it ensures the state collects tax on taxable items even when the seller didn't charge you Texas tax at checkout. The form was designed for Texas residents and businesses that don't already hold a Texas Sales and Use Tax Permit.
Think of it this way: if you buy a coffee table online from an out-of-state seller who doesn't collect Texas tax, or you purchase taxable items during a vacation in Mexico and bring them back to Texas, you're responsible for reporting and paying the tax directly to the Texas Comptroller of Public Accounts. This obligation exists because Texas law requires tax on items stored, used, or consumed within state borders, regardless of where you bought them. The state use tax rate mirrors the sales tax rate at 6.25 percent, and you may owe an additional local use tax of up to 2 percent depending on where you live or use the item.
Common Situations Requiring Form 01-156
- Buying merchandise through online retailers or catalog companies located outside Texas
- Purchasing items from another country
- Acquiring taxable goods from out-of-state vendors at trade shows
- Buying new off-highway vehicles like ATVs from out-of-state dealers
If you already have a Texas Sales and Use Tax Permit, you cannot use this form—instead, you report use tax on your regular sales tax return.
When You’d Use Form 01-156
Filing Deadlines Based on Tax Amount
Understanding filing deadlines for Form 01-156 depends entirely on how much use tax you owe during a calendar year.
If your total use tax liability for all purchases in a year is less than one thousand dollars, you have until January 20 of the following year to file and pay. For example, if you made several online purchases throughout 2022 and owe a total of seven hundred fifty dollars in use tax, you can submit your payment and form any time through January 20, 2023.
However, once your cumulative use tax for the year reaches or exceeds one thousand dollars, the rules change immediately. You must file and pay by the 20th of the month following the month when you crossed that threshold.
Example Threshold Scenario
Suppose you bought an untaxed item in March 2022 owing six hundred dollars in use tax, then purchased another untaxed item in July 2022 owing five hundred dollars more—your total is now eleven hundred dollars. You must file Form 01-156 and pay the full amount by August 20, 2022.
Late Filing Penalties and Interest
- 1–30 days late: 5 percent penalty
- More than 30 days late: 10 percent penalty
- Interest begins after 61 days at 4.25 percent annually (2022 rate)
These charges continue accumulating until paid in full.
Amended Returns and Corrections
The Comptroller's office doesn't use traditional "amended return" terminology.
If You Underreported Tax
File another Form 01-156 and include:
- The additional tax due
- A clear explanation of the correction
- Reference to your previous filing
If You Overpaid
Submit a written refund claim with:
- Explanation of the error
- Supporting documentation
Key Rules or Details for 2022
Who Can Use This Form
- Only individuals and businesses without a Texas Sales and Use Tax Permit
- Permit holders must report use tax on their regular return
Tax Rate Structure
- State rate: 6.25 percent
- Local rate: up to 2 percent
- Maximum combined rate: 8.25 percent
Your rate depends on where the item is stored, used, or consumed.
Credit for Taxes Paid to Other States
If you paid tax to another U.S. state:
- Subtract that amount from your Texas use tax
- Only pay the difference
No credit applies to taxes paid to foreign countries.
Exemptions
Common exemptions include:
- Manufacturing equipment
- Agricultural items
- Certain medical devices
- Qualified nonprofit purchases
Proper documentation (e.g., exemption certificates) is required before claiming any exemption.
Step-by-Step (High Level)
Step 1: Gather Purchase Records
Collect:
- Receipts
- Invoices
- Purchase confirmations
Each should show:
- Date
- Seller
- Item details
- Amount paid
Step 2: Calculate Taxable Amount
- Include purchase price plus shipping/handling
- Exclude non-taxable items
- Apply the correct tax rate
Step 3: Provide Identification Information
Include:
- Name or business name
- Mailing address
- Phone number
- SSN or EIN
Step 4: Enter Purchase and Tax Details
- List transactions or totals
- Calculate tax per item
- Add totals for total use tax due
Step 5: Apply Credits (If Applicable)
- Subtract tax paid to other states
- Include supporting documentation
Step 6: Submit the Form and Payment
Options:
- Online via Webfile (faster)
- Mail with check or money order
Keep copies of all submissions and proof of payment.
Common Mistakes and How to Avoid Them
Not Knowing You Owe Use Tax
Solution:
- Assume tax is due if not collected
- Track purchases throughout the year
Miscalculating the $1,000 Threshold
Solution:
- Track cumulative tax
- Set reminders near $900
Missing Tax Credits
Solution:
- Review receipts for out-of-state tax
- Apply credits properly
Using the Wrong Tax Rate
Solution:
- Use the Comptroller’s rate locator
- Base rate on where the item is used
Poor Recordkeeping
Solution:
- Keep organized documentation
- Store receipts, invoices, and exemption records
What Happens After You File
Processing Timeline
- Online filings: a few business days
- Paper filings: several weeks
Confirmation
- Online: electronic confirmation
- Paper: mailed confirmation
Special Case: Vehicle Purchases
You’ll receive a receipt required for:
- Vehicle registration with the Texas DMV
Comptroller Review
They may contact you for:
- Math errors
- Missing documentation
- Clarification of taxable items
Underpayment Consequences
- Billing notice issued
- Penalties and interest added
- Possible liens or legal action
Overpayment Refunds
To request a refund:
- Submit a written claim
- Include documentation
- File within 4 years
FAQs
What exactly is use tax and why do I have to pay it?
Use tax ensures Texas collects tax on purchases where sellers don’t charge sales tax, typically from out-of-state or foreign vendors. It maintains fairness between local and out-of-state sellers and applies when taxable goods are used, stored, or consumed in Texas.
Can I file Form 01-156 if I have a Texas sales tax permit?
No. If you have an active permit, you must report use tax on your regular Texas Sales and Use Tax Return. Form 01-156 is only for those without a permit.
Do I really need to report small purchases?
Yes. All taxable purchases must be reported, regardless of size. Small purchases often add up and may trigger the $1,000 threshold.
What if I paid tax in another state?
You can claim a credit for taxes paid to another U.S. state. Subtract that amount from your Texas tax liability. No credit applies to foreign taxes.
How do I know my local tax rate?
Use the Texas Comptroller’s rate locator. The rate depends on where the item is used, not where it was purchased.
Can I file and pay online?
Yes. The Webfile system allows electronic filing and payment, offering faster processing and fewer errors.
What happens if I miss the deadline?
You’ll face:
- 5% penalty (1–30 days late)
- 10% penalty (30+ days late)
- Interest after 61 days
Penalties continue until paid. Severe cases may lead to liens or collection actions.
