The term "taxable services" is defined in Tax Code Section Each category encompasses a variety of specific services. Listed below are the types of services that are taxable, including examples and references to additional information. Amusement services and places that offer amusement services include, but are not limited to, the following:. Taxable amusement services include sightseeing tours, online games, fortune telling and similar activities.
See Rule 3. Cable television service is the distribution of video programming, with or without the use of wires, to subscribing or paying customers. The term includes the following:. This applies to both residential and nonresidential customers. Creation or delivery of a credit report or any part of a credit report for a fee or any other consideration is a credit reporting service. Tax is due on credit reporting services if the address of the credit applicant is in Texas at the time of the request for a report, and the person who requested the credit report is in Texas or is doing business in Texas.
Using a computer for word processing, data entry, production, compilation, storage or manipulation is a taxable data processing service.
Data processing services providers include sellers of software as a service and application service providers. Merely using a computer as a tool to help perform a professional service is not a data processing service. For example, the use of a computer and computer-aided-design CAD software by an architect during preparation of original building plans is not data processing. Similarly, a bookkeeper or accountant is not performing taxable data processing services when applying knowledge of accounting principles to produce financial reports such as income statements, balance sheets, or profit or loss statements, or to prepare federal income tax, state franchise or sales tax returns, even if such work is performed on a computer.
Data processing does not include the transcription of medical dictation by a medical transcriptionist or internet advertising provided through a classified advertisement, banner advertisement, vertical advertisement, or link when the item is displayed on an Internet website owned by another person.
