Texas Taxable Services Update March 2012

Texas has updated their “…types of services that are taxable,” publication. There are currently 17 broad categories of services and “[e]ach category encompasses a variety of specific services.” The categories include:

  • Amusement Services such as circuses, concerts, movie theaters, antique shows, auto shows, museums and sports events.
  • Credit Reporting Services that deliver a credit report for a fee or other consideration within Texas.
  • Data Processing Services such as word processing, data processing, accounts payable/receivable, web hosting and offsite electronic data storage.
  • Debt Collection Services such as overdue bill and returned check collection, delinquent account reach out, repossessing property and filing liens.
  • Insurance Services such as claims adjustment or processing, damage and loss appraisal, inspection and investigation.
  • Security Services such as locksmith services, private investigation, armored car service, vehicle location and tracking.
  • Personal Property Maintenance such as laundering, dry cleaning, massage and escort services.
  • Telephone Answering Services that involve “[r]eceiving and relaying of telephone messages by a human operator but does not include call center operations….”

According to the publication, other types of sales “…that may commonly be considered ‘services’ are taxable as the sale, processing or remodeling of tangible personal property.”

For example, charges for manufacturing, assembling or processing a product from raw materials provided by the customer. Services falling into that category include photography, video artwork, printing, calligraphy, woodworking, sewing and tailoring, catering, welding and product assembly.

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