What Form 01-156 Is For
Form 01-156, officially titled the Texas Use Tax Return, is a simplified tax 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 for use, storage, or consumption in Texas but the seller did not collect Texas sales tax at the time of purchase.
The most common scenario requiring Form 01-156 is purchasing items from out-of-state retailers—whether through online shopping, mail-order catalogs, telephone orders, or in-person purchases outside Texas—when the seller does not collect Texas tax. For example, if you buy a laptop from an online retailer based in California that doesn't charge Texas tax, and you use that laptop in Texas, you owe use tax on the purchase. Similarly, items purchased internationally and brought into Texas for use here are subject to use tax. The form covers tangible personal property like furniture, electronics, clothing, and vehicles, as well as taxable services delivered into Texas.
It's important to understand that if you already hold a Texas Sales and Use Tax Permit, you would not use Form 01-156. Instead, permitted businesses report their taxable purchases on Line 3 ("Taxable Purchases") of their regular sales and use tax return. Form 01-156 specifically serves non-permitted purchasers who need to fulfill their use tax obligations on occasional purchases.
When You’d Use Form 01-156
Filing Thresholds and Timing
Form 01-156 follows specific filing schedules based on the amount of use tax you owe. If you owe less than $1,000 in use tax during a calendar year, you must file and pay by January 20 of the following year. This annual filing option allows you to accumulate smaller purchases throughout the year and report them once.
However, if your cumulative use tax liability reaches or exceeds $1,000 during any calendar year, you must file and pay by the 20th of the month following the month in which you crossed that threshold.
For example, suppose you purchase an untaxed computer in March for which you owe $250 in use tax, then buy untaxed furniture in August owing $800 more. Since your total liability for the year reaches $1,050 in August, you must file Form 01-156 and pay the full amount by September 20—you cannot wait until the following January.
Late Filing Situations
If you miss your filing deadline, you should file as soon as possible. Late filings are subject to penalties and interest.
- A $50 late filing penalty applies to returns filed after the due date
- 1–30 days late: 5% penalty
- Over 30 days late: 10% penalty
- Interest begins accruing after 61 days
Amended Returns
If you discover errors on a previously filed return:
- Complete a corrected version of the form
- Mark it “AMENDED RETURN” at the top
- Include explanation of changes
If additional tax is owed, include payment plus penalties and interest. If overpaid, file Form 00-957 for a refund.
Key Rules or Details for 2011
Tax Rate Structure
- State rate: 6.25%
- Local rate: up to 2%
- Maximum combined: 8.25%
The applicable rate depends on where the item is used, stored, or received.
Credit for Taxes Paid to Other States
Texas allows a credit for taxes paid to another state on the same purchase.
- Prevents double taxation
- Credit cannot exceed Texas tax due
Filing Thresholds
- Under $1,000 → annual filing (Jan 20)
- $1,000+ → monthly filing
Payment Methods
- Mail (check)
- Electronic via Webfile
Exemptions Still Apply
Use tax does not apply if the purchase qualifies for exemption under Texas law.
Shipping and Handling Included
Shipping, delivery, and handling charges must be included in the taxable amount.
Step-by-Step (High Level)
Step 1: Gather Your Purchase Documentation
Collect:
- Receipts
- Invoices
- Purchase records
Include dates, prices, seller info, and tax details.
Step 2: Calculate Your Total Taxable Purchases
- Add all untaxed purchases
- Include shipping
- Exclude exempt or already-taxed items
Step 3: Determine the Applicable Tax Rate
Use your location where the item is used or stored. Apply the correct combined rate.
Step 4: Calculate Credits for Out-of-State Taxes
- Identify eligible purchases
- Apply credit (cannot exceed TX tax due)
Step 5: Complete the Form
Fill in:
- Personal/business info
- Taxable purchase total
- Credits
- Final tax due
Double-check all calculations.
Step 6: Submit Payment and Form
- Mail with check OR
- File electronically via Webfile
Keep copies for records.
Common Mistakes and How to Avoid Them
Mistake 1: Forgetting Online and Out-of-State Purchases
Track purchases throughout the year using statements or a spreadsheet.
Mistake 2: Excluding Shipping and Handling Charges
Always include delivery-related costs in your taxable total.
Mistake 3: Failing to Claim Credits
Keep receipts showing taxes paid to other states.
Mistake 4: Misunderstanding Filing Thresholds
Monitor your total use tax to avoid missing monthly filing triggers.
Mistake 5: Using the Wrong Tax Rate
Use the correct location where the item is used—not where purchased.
Mistake 6: Not Keeping Adequate Records
Maintain documentation for at least four years.
Mistake 7: Assuming All Out-of-State Purchases Require Tax
Check receipts—if Texas tax was already collected, do not report again.
What Happens After You File
Payment Processing
- Mail: processed in a few weeks
- Electronic: 1–2 business days
Compliance Record
Your filing establishes proof of compliance.
No Permit Required
Filing does not require a sales tax permit.
Potential Audits or Inquiries
The Comptroller may request documentation—this is routine.
Revenue Allocation
Funds are distributed between state and local governments.
Future Filing Obligations
- One-time filers may not need to file again
- Frequent purchasers must track and file regularly
Overpayment Refunds
File Form 00-957 within four years if overpaid.
FAQs
Do I need to file Form 01-156 if the online seller charged me some sales tax but it was less than the Texas rate?
Yes, potentially. If you paid tax to another state or a lower-rate jurisdiction but the combined rate was less than what Texas requires, you owe the difference as use tax. Calculate the Texas use tax based on your Texas location's rate, subtract any tax already paid, and report the net amount due on Form 01-156.
Can I file Form 01-156 electronically or must I mail the paper form?
The Texas Comptroller encourages electronic filing through the Webfile system. It allows payment via EFT or credit card and provides faster processing. Paper filing is still available.
What items are not subject to use tax even when purchased from out-of-state sellers?
Exempt items include resale goods, certain agricultural equipment, manufacturing machinery, prescription drugs, most food items, and qualifying nonprofit purchases. Documentation is required.
I bought a used item from an individual seller—do I owe use tax?
Generally, yes. Most tangible personal property is taxable unless it qualifies under an occasional sale exemption.
What if I can't determine how much tax I paid to another state?
Contact the seller for receipts. If unavailable, research may help—but documentation is strongly preferred.
How long should I keep records?
Keep all supporting documents for at least four years.
If I have a Texas Sales and Use Tax Permit, should I use Form 01-156?
No. Use your regular sales and use tax return instead. Form 01-156 is only for non-permitted purchasers.
