What Texas Form 01-156 Is For
Texas Form 01-156, officially titled "Texas Use Tax Return," is a specialized short form designed for individuals and businesses without a Texas Sales and Use Tax Permit who need to report and pay use tax directly to the Texas Comptroller of Public Accounts. Use tax is a complementary tax to sales tax that applies when you purchase taxable goods or services from out-of-state sellers who don't collect Texas tax, or when you bring items purchased outside Texas into the state for use, storage, or consumption.
The form serves a straightforward purpose: ensuring that Texas receives its rightful tax revenue on purchases made from sellers who aren't collecting Texas sales tax. This includes online purchases from retailers in other states, items purchased while traveling and brought back to Texas, or goods bought from foreign countries like Mexico that you use in Texas. The current state use tax rate is 6.25 percent, with local jurisdictions potentially adding up to 2 percent more, for a maximum combined rate of 8.25 percent depending on where you store or use the item.
It's important to understand who cannot use Form 01-156: if you already hold a Texas Sales and Use Tax Permit, you must report use tax on your regular sales tax return under "Taxable Purchases" (Item 3), not on this separate form. Form 01-156 is exclusively for non-permitted purchasers—individuals and entities who don't normally collect and remit sales tax in Texas but occasionally need to pay use tax on specific purchases.
When You’d Use Texas Form 01-156
Filing Deadlines Based on Amount Owed
Form 01-156 follows specific filing deadlines that depend on how much use tax you owe during a calendar year.
- If you owe less than $1,000, file by January 20 of the following year
- If you owe $1,000 or more, file by the 20th of the month after reaching $1,000
Example Scenario
Suppose you purchase an untaxed item in March and owe $250 in Texas use tax. You can wait and file through January 20 of the following year. But if another purchase in September adds $800 (totaling $1,050), you must file by October 20.
Late Returns
If you miss your filing deadline:
- 5% penalty (1–30 days late)
- 10% penalty (31+ days late)
- Additional 10% after notice (total 20%)
- Interest begins on day 61
Continued non-compliance may result in liens, asset seizures, or criminal charges.
Amended Returns
How to File an Amendment
- Write "AMENDED RETURN" at the top
- Correct errors directly on the form
If You Owe More
- Pay additional tax + penalties + interest
Additional Notes
The Comptroller may request documentation to support changes.
Key Rules or Details for 2013
Rule 1: Credit for Taxes Paid to Other States
You can claim a credit for tax paid elsewhere.
- Pay only the difference if Texas rate is higher
- Keep receipts as proof
Rule 2: Tax Rate Determination
Tax depends on where the item is used or stored.
- Use the Texas Sales Tax Rate Locator
- Rates vary by location
Rule 3: When Use Tax Applies
Common cases:
- Online purchases without tax
- Items bought out-of-state
- International purchases (e.g., Mexico)
- Gifts used in Texas
Rule 4: Documentation Requirements
Maintain:
- Receipts
- Invoices
- Proof of delivery
- Tax payment records
Keep records for at least four years.
Rule 5: No Permit Holders Allowed
If you have a permit, you must file using regular sales tax forms instead.
Step-by-Step (High Level)
Step 1: Gather Purchase Information
- Collect receipts and invoices
- Include shipping and handling
- Identify usage location
Step 2: Determine Your Tax Rate
- Use the official rate locator
- Include local tax rates
Step 3: Calculate Taxes Owed
- Multiply purchase price by tax rate
- Subtract any eligible credits
- Total all amounts
Step 4: Complete Form 01-156
- Fill in personal details
- Report purchase totals and tax calculations
- Sign the form
Step 5: Submit Payment
- File online (fastest)
- Or mail with check payable to "Texas Comptroller"
Step 6: Keep Records
- Save copies of forms and receipts
- Retain for at least four years
Common Mistakes and How to Avoid Them
Mistake 1: Using the Form with a Permit
Avoid: Confirm you don’t hold a permit before filing.
Mistake 2: Excluding Shipping Costs
Avoid: Always include delivery and handling fees.
Mistake 3: Not Claiming Tax Credits
Avoid: Check receipts for taxes paid to other states.
Mistake 4: Missing the $1,000 Threshold Deadline
Avoid: Track cumulative tax throughout the year.
Mistake 5: Using Incorrect Tax Rates
Avoid: Use the official rate locator for accuracy.
Mistake 6: Poor Record Keeping
Avoid: Maintain organized records and digital backups.
What Happens After You File
Initial Processing
- Online filings: immediate confirmation
- Mail filings: longer processing time
Payment Posting
- Payment is credited to your account
- Receipts available upon request
Potential Audit
- Audits may review up to four years
- Documentation is required
Compliance Monitoring
- Frequent filings may trigger permit review
Future Obligations
- Continue reporting use tax on future purchases
Refund Eligibility
- File amended return to claim overpayment
- Provide supporting documentation
FAQs
Can I file Form 01-156 if I occasionally sell items online?
If your sales are occasional, you may not need a permit. Regular selling requires a permit, and then you cannot use Form 01-156.
What about Amazon or eBay purchases?
If tax was collected, no action is needed. If not, you must report and pay use tax.
How does the tax credit for other states work?
You subtract the tax paid to another state from what Texas would charge and pay only the difference.
What if I miss the deadline?
You can still file, but penalties and interest apply immediately.
Do I need to file every year?
No. Only file when you owe use tax.
Can I file electronically?
Yes, but it is not required. Online filing is faster and more convenient.
What about purchases from Mexico?
You must pay full use tax based on Texas rates. No credit applies for foreign taxes.
