These rules were made for walkin’: Texas reboots sales tax on data processing and information services

In this episode of the SALT Shaker Podcast, Partners Jeremy Gove and Chelsea Marmor break down the Texas Comptroller’s recent narrowing of the tax on data processing and information services. Jeremy and Chelsea discuss the Comptroller’s 2025 amendment to the data processing rule, its rejection of the “essence of the transaction test,” Comptroller Huffines’ proposed regulation revising the amendment to remove marketplace fees from the tax on data processing, and the effect this change may have on other aspects to the 2025 data processing rule amendment. 

They also discuss the Comptroller’s recent announcement proposing to exclude electronic medical records from the tax on information services, and what these changes may signal for future Comptroller policy regarding the tax on data processing and information services.

Finally, in the latest edition of overrated/underrated, Jeremy and Chelsea weigh in on cowboy boots.

Additional information about Texas’s taxing of data processing services can be read here: Texas Comptroller revises data processing tax on marketplace fees