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Texas: Electronic Bill Payment Services Are Taxable


The Texas Comptroller of Public Accounts ruled earlier this year that electronic bill payment services are taxable.

The electronic bill payment services in question enable customers of financial institutions to monitor their accounts and make electronic payments from their accounts.  The Petitioner argued that these services are not taxable, pursuant to Texas TAX CODE ANN. Section 151.0101(a).

The Comptroller noted that under Texas TAX CODE ANN. Section 151.0101(a)(12) "data processing services" are indeed taxable services. The Comptroller further countered with 34 TEX. ADMIN. CODE Section 3.330(a)(1), noting that:

"Data processing services -- the process of information for the purpose of compiling and producing records of transactions, maintaining information, and entering and retrieving information. … The charge for data processing services is taxable." 

Although the Petitioner's electronic bill payment services are not specifically enumerated in the Texas Code, the Comptroller determined that they are similar enough to merit taxation.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.