Texas Comptroller Determines Taxability of Bundled Subscription Services

The Texas Comptroller of Public Accounts issued a private letter ruling on the taxability of an annual subscription for services. The Comptroller held that charges for a company’s bundled subscription services, which included website creation, order management, and social media marketing for restaurants and bars, were subject to Texas sales and use tax as taxable data processing services. However, certain services like creating social media posts, email and text marketing campaigns were considered non-taxable when provided separately, but were taxed as part of the bundled charge since the data processing services represented over 5 percent of the total charge. [Tex. ...