If you're in the business of gathering and/or maintaining information for others, you may need to collect sales tax.
Here are examples of taxable information services. This list does not include all information services, but it will give you some guidelines. If you have a question on a specific service, call our toll-free number, 1-800-252-5555, for help. The local number in Austin is 512/463-4600.
Effective October 1, 1999, you should collect state sales tax, plus any city, county, transit tax or special purpose district tax on only 80 percent of the amount you bill for your information service.
Also effective October 1, 1999, Internet access service was excluded from the definition of information service and designated as a separate taxable service. The first $25 of the monthly charge for Internet access service is exempt from sales tax.
You should pay tax on materials, supplies and equipment you use to provide an information service. You may give your supplier a resale certificate in lieu of paying tax on a service that is an integral part of your information service or on materials or equipment that are transferred to the care, custody and control of your customer as a part of the information service. For example, a computer terminal placed in your customer's business may be purchased tax free with a resale certificate if the computer terminal is used by the customer to access the information service.
You may need an information service from a third party so that you can sell that information service to your customer. You may give a resale certificate to the third party in lieu of paying tax on an information service sold to your customer. You will then collect tax on the total amount to your customer for the information service.
In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.