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Ezel / Tax Rulings / TX
TX 8711L0834D11 Sales and/or Use Tax (State,Local,MTA) 1987-10-13

Did Texas decide whether bookkeeping services would be taxable as data processing services?

Short answer: No. The Comptroller declined to answer while a proposed data-processing rule was being written and said the rule was expected to take effect January 1, 1988.

Apply this to your situation

This page answers the general question as of 1987. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1987
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an October 1987 Texas Comptroller letter to Clay Walters about bookkeeping services. It does not decide whether the services were taxable; it deferred the question while a proposed data-processing rule was being written. The stated January 1, 1988 expected effective date is historical and not current-law guidance. The letter says the opinion may change if the facts differ. STAR documents may no longer represent current policy even when not marked superseded. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The Comptroller did not decide whether the requested bookkeeping services were taxable. The letter said a proposed rule taxing data processing services was still being written and was expected to take effect January 1, 1988, so the question could not be answered at that time.

The requester was placed on a mailing list to receive the proposed rule when it was complete. The letter contains no description of the bookkeeping work and no final taxability analysis.

What this means for you

This letter records a deferred question, not a holding that bookkeeping was taxable or exempt. It should not be used to infer the treatment of any particular bookkeeping service.

Common questions

Did the Comptroller say bookkeeping was taxable? No.

Did the Comptroller say bookkeeping was exempt? No.

Why was there no answer? A proposed rule to tax data processing services was still being written.

What happened next according to this letter? The requester was added to a mailing list for the proposed rule. The letter does not state the rule's final contents.

Citations and references

  • No statute or rule number is cited in the ruling text.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774
October 13, 1987

Mr. Clay Walters
P.O. Box 1397
Victoria, TX 77902

Dear Mr. Walters:

Thank you for your letter inquiring about the taxability of bookkeeping
services.

The proposed rule to tax data processing services is currently being
written
and will become effective January 1, 1988. Therefore, we cannot answer
your
question at this time.

Your name and address has been put on our mailing list. You will
receive a
copy of the proposed rule when it is complete.

This opinion is based on the facts presented. If there are additional
or
different facts, the opinion may change.

If you have any questions or need more information, please call me at
1-800-252-5555 toll free from anywhere in Texas. The regular number
is
512/463-4600. You may write me at the Tax Policy Division.

Sincerely,

Eddie C. Washington
Tax Policy Division

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