Texas Gets Heat for Heaping Data Tax on Online Marketplaces

Oct. 13, 2023, 7:16 PM UTC

A policy by the Texas comptroller applying the state’s sales tax on data processing to commissions charged by online marketplaces is prompting at least one prominent law firm to search for clients to sue the state.

State and local tax attorneys at McDermott, Will & Emery object to a position emerging in audits in which the state revenue agency applies the sales tax to commissions charged by marketplaces such as Amazon.com Inc., eBay Inc. and Walmart.com to third-party sellers using their services. The comptroller views the commissions—typically 30% of the sales price of each transaction—as a charge for a wide ...

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