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How does Texas sourcing work?

Overview

You need to have a better understanding of how Texas sourcing works.

Environment

AvaTax

Resolution

  • Here's the documentation from the state describing Texas sourcing.
  • For Intra-state transactions (Texas Origin to Texas Destination), the tax jurisdictions are determined as follows:
    • Cities and counties are pulled from the Origin address
    • STJs are pulled from the Destination address
    • Some service tax codes will be entirely destination-based