Texas Comptroller Rules Mobile App Fee Taxable as Data Processing Service

The Texas Comptroller of Public Accounts issued Private Letter Ruling in response to taxpayer’s request for guidance on the taxability of charges to fuel stops related to the sales through a mobile application that allows truck drivers to purchase discounted fuel. The Comptroller held that the percentage-based fee charged by a company operating a mobile app for truck drivers to purchase discounted fuel is taxable as a data processing service under Texas law. The company must collect and remit sales tax on 80 percent of the fee charged to the fuel stations pursuant to the 20 percent exemption for data ...