Most retail business owners will have to charge customers sales tax.
After a business charges and collects sales tax, the business must file
a return with the state and hand over the sales tax it has collected.
Visit the Texas Sales and Use Tax forms site and download the Sales
and Use Tax Return (01-114). Follow the directions below.
1. Report the following amounts: Total sales $50,000; Taxable Sales
$48,000; Taxable Purchases $1,000. The amount subject to local tax,
in this case, will be the same as the amount subject to state tax.
2. Calculate the amount of state and local tax due if the tax rates
are 6.25% for state tax and 2% for local tax.
3. Calculate the total state and local amount due, and the total
amount paid if there is a timely filing discount but no prepayment
credit, no prior payments, and no penalty or interest.
4. Put you name in the space left for the taxpayer name and mailing
address, use the previous month for the filing period and today's
date for the due date. Hand the complete form in to you instructor.
