Sales Tax Information

What sales tax do we pay if we receive goods or services from outside of The Hills but from a vendor in the State of Texas? Sales tax is based upon the point of origin (place of business) of a vendor or service provider, not the point of delivery. If you order goods or services from Lakeway, Bee Cave, Austin, Bastrop, etc., you will pay the sales tax applicable to the city from which you ordered. An exception to this is if you have goods delivered from Austin, or any city with a municipal transit authority tax, you should not pay the transit tax (Austin’s transit tax is 1%). Also, if you order from a city that has both a city and county tax, such as Bastrop, you will pay both taxes.

Service Tax
Service personnel who do not have a place of business should not charge a local sales tax (just the state and library district 6.5%). If you hire a maid she is considered your employee and no sales tax is due. But, if you have a maid from a “maid service” or your maid has employees cleaning house for her, sales tax is based on the place of business of the service and that local sales tax should be charged. The same would apply to lawn care providers, pool caretakers, etc. If they are working on their own and have no place of business local tax is not charged; if they are working out of a business address tax is charged at the tax rate where the business address is located.

Approved Tax

On November 3, 2009, Hills voters approved a local sales tax of 0.75% for street maintenance and property tax reduction. This is in addition to the 6.5% state and library district sales tax.

City sales and use taxes may be found on the Texas Comptroller of Public Accounts website.

Just remember, cities are limited to a 2% sales tax so you should never pay more than 8.25% sales tax in Texas.

Further Information

If you have a sales tax question please contact the Comptroller’s Office via email (please include a daytime phone number) or you may call 512-463-4600