Despite the COVID-19 pandemic, there will be no extension for the upcoming sales tax payment deadline. In a press release, Texas State Comptroller Glenn Hegar reminded business owners that sales taxes collected in February are due March 20, 2020.
Hagar announced sales taxes will be collected as usual and disbursed to local communities who rely on that revenue to provide day to day and emergency services to local residents. He stressed that these taxes were collected from Texans, who expect them to be used to provide needed services. Sales taxes fund police, fire and other emergency services that are on the frontlines of the COVID-19 pandemic.
“I know this will be difficult for many businesses, especially small businesses, that are facing a severe downturn in customer activity,” Hegar said. “We will examine each tax due date as it approaches, and I will keep lawmakers and stakeholders informed as the agency evaluates rapidly changing conditions.”
In his press release, Hegar also urged businesses to make use of the agency’s online tools to meet the March 20 deadline. The agency also created protocols to ensure social distancing for taxpayers who must visit the comptroller field offices.
From experience, we know that many small businesses use sales tax collected as an interest-free loan until the due date for payment in the following month. When a good month is followed by an economic slow-down of these proportions, cash flow to pay the taxes can become a major hurdle for many small business owners.
The Chamber is dedicated to helping businesses of all sizes navigate these uncertain times. CLICK HERE to visit our COVID-19 resource page.