StatutoryFree to readRules current as adopted; guidance publications carry their own revision dates
Texas Comptroller of Public Accounts
administrative interpretation of contractor sales taxwhat distinguishes a lump-sum from a separated contract in practiceinvoicing and progress billing as evidence of contract structuretaxability of labour on new construction, residential repair and nonresidential repairresale certificates issued by contractors to suppliersreal property services purchased by homebuilders
StatutoryFree to readCurrent through the 88th Legislature
Texas Legislature
payment periods for governmental entitiesflow-down of public payments to subcontractorsinterest on overdue public paymentsdisputed invoice notice and withholding limits on public workvendor's right to suspend performanceattorney fees in public payment actions
StatutoryFree to readCurrent through the 88th Legislature; substantially amended by Acts 2021, 87th Leg., Ch. 635 (H.B. 692), effective 15 June 2021
Texas Legislature
retainage on public works contractsretainage caps by contract valueflow-down limits on retainage percentagesrelease of retainage at substantial and final completioninterest-bearing retainage accountsexemptions from the public retainage regime
This is where a Texas payment application diverges most sharply from a Florida one on public work: the retainage rate is capped by the value of the contract, the cap binds per line of the schedule of values as well as in total, and the percentage cannot increase as it passes down the chain. All three have to be checked before the schedule of values is signed, because that is the document retainage is computed from for the life of the job.
StatutoryFree to readCurrent through the 88th Legislature
Texas Legislature
construction payments and loan receipts as trust fundsbeneficiaries of construction trust fundsmisapplication of trust funds and its penaltiesconstruction accounts for residential homestead workaccount records for construction accounts
This is what stands behind the warranty printed on every statutory waiver form, that the signer will use the funds to pay its own labour and suppliers. It converts a payment application from a commercial document into a document with criminal consequences, and the construction account requirement for homestead work above a low threshold is a standalone offence that catches contractors who paid everyone properly out of the wrong bank account.
StatutoryFree to readCurrent through the 88th Legislature; Section 28.0091 added by Acts 2023, 88th Leg., Ch. 533 (H.B. 3485), effective 1 September 2023
Texas Legislature
payment periods on private construction contractsflow-down of payment to subcontractorsinterest on overdue private paymentsgood faith dispute withholding limitsright to suspend performance for nonpaymentunsigned owner-directed change orders
StatutoryFree to readCurrent through the 88th Legislature
Texas Legislature
sales and use tax on constructionthe lump-sum and separated contract distinctioncontractor as consumer or as seller of incorporated materialstaxable real property repair and remodelling and its residential exclusionresale and exemption certificateswhat may be excluded from the sales price if separately identifiedexempt entity contracts
The Texas tax posture is decided by the structure of the contract and evidenced by the face of the invoice, which is why this authority shapes a document template rather than only a tax return. A contractor who itemises materials on a lump-sum job to look transparent has converted itself into a retailer of those materials and owes tax it never collected.
StatutoryFree to readCurrent through the 88th Legislature
Texas Legislature
municipal sales and use taxthe cap on combined local sales tax at a locationrate increments and how local rates are adopted
Held mainly for the cap, which is the only local tax figure that can be stated as a constant. The actual rate at a jobsite is a lookup, not a rule, which is why the corresponding canon rule is must_verify with a null threshold.
De facto standardPaywalled
Contractor work-in-progress schedule and percentage-of-completion reporting
Construction accounting and surety practice (AICPA construction industry guidance; individual surety requirements)
work in progress reportingpercentage of completionover and under billingsurety and lender reporting