Texas Sales Tax refund (IAH). Does anyone know how this works? (Houston: home, buying)

[behtypa]

In case you never heard: You can refund 8.25% on your purchases at big box stores/boutiques when you leave the country within 30 days from purchase. This also applies to US citizens.

Examples: You buy $1000 Iphone for your relative overseas. You can refund $82.50 of state tax.

Now, QUESTIONS:

1. I am wondering, why there is just one location in Houston (IAH airport) to refund Texas sales tax (8.25%) for US citizens? And so many (Galleria mall, other malls) for foreigners? Looks like a discrimination (foreigners are allowed what locals cannot).

2. Why only one entity (Taxfreetexas aka TaxFree Shopping Ltd. (?) is allowed to conduct this service statewide? Looks like a monopoly (only one business is allowed to refund tax in Texas, no competition). Accordingly, they retain 40% of your refunded tax as a fee. Too much if you ask me.

3. How does this refund business work? If the refund monopoly takes 40% from your refunded tax as a service fee, can I refund 100% of it myself?For example, can I fill in a form and send sales receipt to Texas Comptrollers Office for refund? Did anyone do it? Please share your experience.

Thank you.

[Hopeful for Life]

Originally Posted by behtypa

In case you never heard: You can refund 8.25% on your purchases at big box stores/boutiques when you leave the country within 30 days from purchase. This also applies to US citizens.

Examples: You buy $1000 Iphone for your relative overseas. You can refund $82.50 of state tax.

Now, QUESTIONS:

1. I am wondering, why there is just one location in Houston (IAH airport) to refund Texas sales tax (8.25%) for US citizens? And so many (Galleria mall, other malls) for foreigners? Looks like a discrimination (foreigners are allowed what locals cannot).

2. Why only one entity (Taxfreetexas aka TaxFree Shopping Ltd. (?) is allowed to conduct this service statewide? Looks like a monopoly (only one business is allowed to refund tax in Texas, no competition). Accordingly, they retain 40% of your refunded tax as a fee. Too much if you ask me.

3. How does this refund business work? If the refund monopoly takes 40% from your refunded tax as a service fee, can I refund 100% of it myself?For example, can I fill in a form and send sales receipt to Texas Comptrollers Office for refund? Did anyone do it? Please share your experience.

Thank you.

Are you sure that we locals are allowed to get our sales tax refunded? that seems way too good to be true. I think the reason why foreigners don't pay is because our culture is very greedy . They'd rather refund the $ to savvy foreigners and make us make up the difference in tax collections. I don;t know if other countries make it so easy on us (or others)? I first discovered that I could get refunded years ago when traveling in Spain. It was ONLY in the Airport and way far out of the way. Our unique greedy capitalist culture makes it possible. It's the same reason that we are dinged with so many fees and taxes for EVERYTHING to benefit the freespending govt and business, while the govt bribes businesses to relocate here with gobs of taxpayer money incentives.

[behtypa]

Originally Posted by Hopelesscause

Are you sure that we locals are allowed to get our sales tax refunded? that seems way too good to be true.

Yes, I am. You can get your tax back (well, around 50% of it, since the middle man takes the other half) at IAH 2 locations:

Houston George Bush Intercontinental Airport (IAH)*

Terminal D
Outside Security by Qatar Airways Ticketing Booth
Hours of Operation:
Daily, 9:00am -10:00pm

Terminal E*:
Outside Security by United Airlines Check-In
Hours of Operation:
Daily, 9:00am - 9:00pm

[mikeyyc]

Goods must be for export only, and I'm sure you have to take an oath to that.

[shinjuku2019]

Attention International Shoppers:
TaxFree Shopping offers one stop, quick and easy processing of your Texas sales tax refund. Pre-Register at TaxFree Shopping - www.taxfreeshopping.com for a quicker processing time.

Step 1: Shop at any of our 6,000+ participating stores.
Step 2:
Process your refund at one of our 17 locations. (U.S. Citizens may only process at airport locations on the day of departure)

Bring:
Purchased Merchandise for inspection (new and unused)*
Original Receipts*
Passport
I-94/Entry Stamp/ESTA, Visa, IFE
Flight or Transportation Information.

$12 in sales tax required per physical store location.*

Step 3: Receive your refund by Cash, Check or PayPal, less our processing fee.

[elnina]

Here are the regulations:
https://comptroller.texas.gov/taxes/sales/refunds/

What you wish to buy at those two airport locations? Are those stores participating in duty free sales? Are you purchasing products to export out them of the country? Is that what are you looking for?

Items being EXPORTED out of the country are the only items eligible for Texas sales tax refunds.
More here:
TaxFree Shopping - www.TaxFreeTexas.com - requirements
TaxFree Shopping - www.TaxFreeTexas.com - FAQ

You can't buy from Duty Free if you are a domestic traveller as they will check your boarding pass while shopping. ... Duty Free goods are for passengers arriving by an international flight.

Sales tax refund locations:
Tax Free Office Locations | Texas Tax Back

[elnina]

I can't find any info about US citizens getting tax refund on items bought in the US and brought to other countries.
Where does it says that US citizens are eligible for tax refund on items bought in the US?

Generally, duty-free/tax free shopping (or getting sales tax refund on some items) enables citizens of one country to buy goods in another (country) and bring those goods back home without paying duty (or tax) on some or all of the purchase price.
TaxFreeTexas is possibly the only agency that facilitates the tax refund process, and they charge fees that are a proprtionately large part of the tax refund.
The only alternative found on the web would be doing it directly with
https://comptroller.texas.gov/taxinf...d_request.html.

When I look into stores like Amazon - they have an option for a tax refund; I just don't know if delivering it to Texas qualifies for a tax refund?
Texas wants their internet sales taxes back, so the Quill's rule might change in 2019.
https://www.amazon.com/gp/help/custo...deId=201133470

You might want to buy some of your gifts (limited selection up to $100) during Texas Tax Free Shopping in August.

BTW:
Let's say you (US citizen) bought an expensive item - in your case a mobile phone, in the US claiming it as a gift for your family overseas, and therefore want the sales tax back (on $1000 phone it would be $82.50).
How anyone would know/check if you didn't buy it for yourself, and planning to bring it back, just to save on taxes? On more expensive items like computers, jewelry/watches, other electronic gadgets the saving could be even bigger...

[elnina]

Any clarifications or new findings, OP?
Please share.

[behtypa]

>>Where does it says that US citizens are eligible for tax refund on items bought in the US?

shinjuku2019 has copied it above: U.S. Citizens may only process at airport locations on the day of departure

I have personally refunded the tax. IAH airport has 2 kiosks (terminal D and E). They require your ID + boarding pass to make sure that you are leaving the country the same day. No boarding pass - no tax refund.

Not every store purchase can be refunded. I have used it for an iphone purchased at the apple store. Apple can print original + copy receipt, for your records. The Tax kiosk will keep the original receipt.

The whole process will take 5 minutes and 3 documents.

[elnina]

So, in other words you can buy expensive phone at the airport, show them your current ticket, get the tax refund, fly somewhere overseas, then come back with the phone?

BTW: are you sure that the phone you buy at the airport MINUS your tax refund is still cheaper than buying it online?