Sec. 321.002. DEFINITIONS. (a) In this chapter:
(1) "Additional municipal sales and use tax" means only the additional tax authorized by Section 321.101(b).
(2) "Municipality" includes any incorporated city, town, or village.
(3)(A) "Place of business of the retailer" means an established outlet, office, or location operated by the retailer or the retailer's agent or employee for the purpose of receiving orders for taxable items and includes any location at which three or more orders are received by the retailer during a calendar year. A warehouse, storage yard, or manufacturing plant is not a "place of business of the retailer" unless at least three orders are received by the retailer during the calendar year at the warehouse, storage yard, or manufacturing plant.
(B) An outlet, office, facility, or any location that contracts with a retail or commercial business to process for that business invoices, purchase orders, bills of lading, or other equivalent records onto which sales tax is added, including an office operated for the purpose of buying and selling taxable goods to be used or consumed by the retail or commercial business, is not a "place of business of the retailer" if the comptroller determines that the outlet, office, facility, or location functions or exists to avoid the tax legally due under this chapter or exists solely to rebate a portion of the tax imposed by this chapter to the contracting business. An outlet, office, facility, or location does not exist to avoid the tax legally due under this chapter or solely to rebate a portion of the tax imposed by this chapter if the outlet, office, facility, or location provides significant business services, beyond processing invoices, to the contracting business, including logistics management, purchasing, inventory control, or other vital business services.
(C) Notwithstanding any other provision of this subdivision, a kiosk is not a "place of business of the retailer." In this subdivision, "kiosk" means a small stand-alone area or structure that:
(i) is used solely to display merchandise or to submit orders for taxable items from a data entry device, or both;
(ii) is located entirely within a location that is a place of business of another retailer, such as a department store or shopping mall; and
(iii) at which taxable items are not available for immediate delivery to a customer.
(b) Words used in this chapter and defined by Chapter 151 have the meanings assigned by Chapter 151.
Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 2003, 78th Leg., ch. 1155, Sec. 1, eff. Sept. 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1360 (S.B. 636), Sec. 4, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 942 (H.B. 590), Sec. 1, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1361 (S.B. 1533), Sec. 1, eff. September 1, 2013.
Notes of Decisions
Cited in
8
cases (
5 in the last 5 years), 2009–2025 · leading case:
Combs v. City of Webster, 311 S.W.3d 85 (Tex. App.—Austin 2010).
Combs v. City of Webster, 311 S.W.3d 85 (Tex. App.—Austin 2010).
· cites it 2× “See Tex. Tax Code Ann. § 321.002 (a)(3). However, the statute plainly states that the definition of place of business "includes any location at which three or more orders are received by the retailer during a calendar year.”
City of Coppell v. Kelly Hancock, No. 15-25-00022-CV (Tex. App.—15th Dist. Sept. 26, 2025).
· cites it 9× “Tex. Tax Code § 321.002(a)(3)(A). The statute further defines what a place of business of the retailer is not.”
City of Coppell v. Kelly Hancock, No. 15-25-00022-CV (Tex. App.—15th Dist. Nov. 26, 2025).
· cites it 9× “Tex. Tax Code § 321.002(a)(3). The Legislature has never defined the terms “receives,” “order,” “employee,” or “agent” in the statutory scheme.”
City of Coppell v. Kelly Hancock, No. 15-25-00022-CV (Tex. App.—15th Dist. Sept. 26, 2025).
· cites it 5× “Tab B C — Texas Tax Code § 321.002 . . . . . . . . .”
City of Coppell v. Kelly Hancock, No. 15-25-00022-CV (Tex. App.—15th Dist. Nov. 26, 2025).
“Tex. Tax Code § 321.002(a)(3)(A). The Comptroller has never asserted that that definition is ambiguous or deficient, and yet, subsection (a)(18) of Rule 3.”
Susan Combs v. City of Webster, No. 03-08-00291-CV, 2009 Tex. App. LEXIS 7746 (Tex. App.—Austin Oct. 2, 2009).
“See Tex. Tax Code Ann. § 321.002 (a)(3). However, the statute plainly states that the definition of place of business "includes any location at which three or more orders are received by the retailer during a calendar year.”
Susan Combs v. City of Webster, No. 03-08-00291-CV (Tex. App.—Austin Oct. 2, 2009).
“See Tex. Tax Code Ann. § 321.002 (a)(3). However, the statute plainly states that the definition of place of business “includes any location at which three or more orders are received by the retailer during a calendar year.”
Tex. Tax Code § 321.002(a)(3): 1 case
City of Coppell v. Kelly Hancock, No. 15-25-00022-CV (Tex. App.—15th Dist. Nov. 26, 2025).
“Tex. Tax Code § 321.002(a)(3). The Legislature has never defined the terms “receives,” “order,” “employee,” or “agent” in the statutory scheme.”
Tex. Tax Code § 321.002(a)(3)(A): 5 cases
City of Coppell v. Kelly Hancock, No. 15-25-00022-CV (Tex. App.—15th Dist. Sept. 26, 2025).
“Tex. Tax Code § 321.002(a)(3)(A). The statute further defines what a place of business of the retailer is not.”
City of Coppell v. Kelly Hancock, No. 15-25-00022-CV (Tex. App.—15th Dist. Nov. 26, 2025).
“Tex. Tax Code § 321.002(a)(3). The Legislature has never defined the terms “receives,” “order,” “employee,” or “agent” in the statutory scheme.”
City of Coppell v. Kelly Hancock, No. 15-25-00022-CV (Tex. App.—15th Dist. Nov. 26, 2025).
“Tex. Tax Code § 321.002(a)(3)(A). The Comptroller has never asserted that that definition is ambiguous or deficient, and yet, subsection (a)(18) of Rule 3.”
Tex. Tax Code § 321.002(a)(3)(B): 2 cases
City of Coppell v. Kelly Hancock, No. 15-25-00022-CV (Tex. App.—15th Dist. Sept. 26, 2025).
“Tex. Tax Code § 321.002(a)(3)(A). The statute further defines what a place of business of the retailer is not.”
Tex. Tax Code § 321.002(a)(3)(C): 1 case
City of Coppell v. Kelly Hancock, No. 15-25-00022-CV (Tex. App.—15th Dist. Sept. 26, 2025).
“Tex. Tax Code § 321.002(a)(3)(A). The statute further defines what a place of business of the retailer is not.”
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