Texas Comptroller Publishes Information on Sales Taxability of Data Processing Services

The Texas Comptroller of Public Accounts March 18 published information on the sales and use taxability of data processing services. The information includes: 1) services like entering, storing, manipulating, or retrieving a customer’s data are taxable, but merely using a computer as a tool to help perform a professional service isn’t taxable; 2) service providers need not collect the tax if their taxable service represents 5 percent or less of the overall contract price and the taxable service charge isn’t separately identified; 3) service providers must collect 6.25 percent state tax from customers on the charge for taxable services, and ...