Texas Comptroller Determines Taxpayer’s Biometric Identification Service Not Subject to Sales Tax

The Texas Comptroller of Public Accounts Sept. 19 determined in a letter ruling the sales and use taxability of Taxpayer’s biometric identification service. Taxpayer provided a biometric identity verification service that allowed for expedited passenger screening through an airport’s security checkpoints. Taxpayer inquired whether the biometric identification service was subject to sales tax. The comptroller noted: 1) Taxpayer wasn’t required to hold a license under the Texas Occupations Code because it didn’t provide any security services or data processing services; 2) Taxpayer’s service involved verifying a customer’s identity based on biometric information that the customer previously provided and not to ...