Is a county's fee for letting the public access county documents and records through a computer link a taxable information service in Texas?

Plain-English summary

A county commissioner's court created a program letting the public access county documents and records through a computer link. Participants sign an agreement with the county covering security, user obligations, and the fees charged for access, and the underlying public records are made available under Section 552 of the Texas Government Code — the state's Public Information (Open Records) Act.

The Comptroller ruled that the fees charged for this computer access are not taxable. Rule 3.342(d)(3) specifically excludes information that a governmental body is required to furnish under the Open Records Act from the definition of a taxable "information service." Because this program exists to fulfill that same open-records access obligation (just delivered electronically instead of over the counter), the access fees fall under that exclusion.

What this means for you

Counties and other governmental bodies charging for electronic records access

Fees charged for computer or online access to documents and records that you're obligated to make public under the Open Records Act are not taxable information services, regardless of the technology used to deliver that access — the Open Records Act exclusion isn't limited to paper copies handed out at a counter.

Businesses or individuals that pay to access government records systems

A fee charged specifically for access to public records under an Open Records Act program should not carry Texas sales tax, unlike a typical commercial information/database service.

Accountants and tax professionals

This letter is a useful, simply stated example of Rule 3.342(d)(3)'s Open Records Act carve-out from the broader "information service" tax base — worth checking whenever a governmental entity charges a fee for record or database access rather than assuming all electronic-information fees are automatically taxable.

Common questions

Q: Is a fee for computer/online access to a county's public records taxable in Texas?
A: No, when the access is provided to fulfill the county's Open Records Act obligations under Government Code § 552, Rule 3.342(d)(3) excludes it from the taxable information-service definition.

Q: Does the "not taxable" treatment depend on the delivery method (paper vs. computer)?
A: No — the exclusion is about the nature of the information (records the government must furnish under the Open Records Act), not the delivery mechanism.

Q: Can I rely on this letter for my own government-records-access program?
A: No. This opinion is based on the facts presented, and additional or different facts may change the result; it binds the Comptroller only as to the taxpayer it was issued to.

Citations and references

• Tex. Gov't Code § 552 (Public Information/Open Records Act)
• 34 Tex. Admin. Code Rule 3.342(d)(3) (excludes Open Records Act information from taxable information services)

Subject

Govt Document/Record — Issued By Governmental Agency — Fee Charged To Access Information Through Computer Link — Not Taxable

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9712926L

Original ruling text

December 3, 1997

Dear **:

Thank you for the additional information you sent regarding the taxability of
charges to access public information through a computer link.

This program was created by order of the county commissioner's court. The
program makes county documents and records available to the public through
computer access. Participating parties enter into an agreement with COUNTY A
County. The agreement governs security, user obligations, and the fees to be
charged for the access. Access to these public records is provided pursuant to
Section 552 of the Texas Government Code.

The fees charged for access to the county computers containing the county's
documents and records are not taxable. Section (d)(3) of Rule 3.342 excludes
providing information required to furnished pursuant to the Open Records Act
from the definition of a taxable information service.

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

You may call me toll free at 1-800-531-5441, ext. 5-0037. The direct line is
512/475-0037. You also may write to Sales Tax Policy Division, Comptroller of
Public Accounts.

Sincerely,

Lindey Osborne
Sales Tax Policy Division