Is a 'Maps on Demand' service that delivers maps and proximity information over the internet subject to Texas sales tax?

Subject

Internet Services — Maps And Proximity Information Provided Over Internet

Plain-English summary

A taxpayer wrote to the Comptroller asking about the taxability of maps and proximity information provided over the internet. The Comptroller responded that the provision of "Maps on Demand" and proximity data displayed via a web page is taxable in Texas. The ruling further clarifies that the total charge for the service is taxable -- not just part of it -- including both the monthly minimum charge and any per-access or per-map charge.

As with other letters of this type, the Comptroller notes the opinion is based on the facts presented and could change if the facts are different.

What this means for you

Businesses providing internet-based map or location data services

If you sell a service that delivers maps or proximity information to customers over a web page -- for example, a "Maps on Demand" style product -- this letter indicates the Comptroller treats that as taxable in Texas. That includes any monthly minimum fee as well as per-access or per-map charges; the ruling does not carve out any part of the charge as nontaxable.

Accountants and tax professionals

Note that this letter does not identify which taxable service category ("data processing" versus "information services," for example) the Comptroller applied, nor does it cite a specific statute or rule. It states only the bottom-line conclusion: the service and its full charge structure are taxable. Because this is a fact-specific 1996 letter ruling, confirm current STAR guidance before relying on it for a present-day transaction.

Common questions

Q: Is a service that provides maps and proximity information over the internet taxable in Texas?
A: Yes. The Comptroller ruled that "Maps on Demand" and proximity data displayed via a web page is taxable in Texas.

Q: Does the monthly minimum charge get taxed, or just the per-map/per-access fee?
A: Both. The letter states the total charge for the service, including the monthly minimum and per access or per map charge, is subject to tax.

Q: Could this answer change under different facts?
A: Yes -- the letter states the opinion is based on the facts presented, and could change if there are additional or different facts.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9608634L

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

August 16, 1996

Dear ***:

Thank you for your letter of August 5, 1996, concerning
the taxability of maps and proximity information provided over the internet.

The provision of "Maps on Demand" and proximity data
displayed via a web page is taxable in Texas. The total charge for the service
including the monthly minimum and per access or per map charge is subject to
tax.

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

You may call me toll free at 1-800-531-5441, ext.
5-0613. The direct line is 512/475-0613. You may also write to Tax Policy
Division, Comptroller of Public Accounts.

Sincerely,
Kevin Koller
Tax Policy Division