Texas Court Rules That Bill Payment Service Was Not Taxable

Tuesday, May 3rd, 2016

 
 
Online bill pay.
Share
Link
Texas
Services

The Texas Court of Appeals determined that an online bill payment service was part of a nontaxable professional service, not a taxable data processing service.

A company provided customers with an online service that allowed them to make payments for various bills. It also allowed customers to customize information for different payees and review past payments.

Texas taxes data processing services, which include services for storing, changing, or searching computerized data and information. The Court determined that the bill payment service was not taxable as a data processing service. Instead, the court ruled that the company used the computerized process to make it easier for the company to provide a nontaxable professional service.

Hegar v. CheckFree Services Corporation, 14-15-00027-CV (Tex. App. 2016).


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Arkansas Creates New Economic Nexus Thresholds

Monday, April 22nd, 2019 -Arkansas recently passed a bill creating economic nexus thresholds for marketplace facilitators and remote sel...

West Virginia Exempts Sales of Bullion and Coins

Friday, April 19th, 2019 -West Virginia has recently created an exemption for sales of investment metal bullion and investment coins. Th...

Marketplace Facilitators Must Collect District of...

Monday, April 15th, 2019 -The District of Columbia Office of Tax and Revenue (OTR) has recently released a notice reminding taxpayers th...

Liquor Enforcement Tax in Kansas

Friday, April 12th, 2019 -Beginning April 1, 2019, Kansas imposed a liquor enforcement tax on sales of all alcoholic liquor, cereal malt...

Farm Machinery Used to Produce Hay for Retail is Taxable...

Wednesday, April 10th, 2019 -The Arkansas Department of Finance and Administration (DFA) recently determined that machinery used to produce...

North Dakota Allows Counties to Impose Local Lodging and...

Monday, April 8th, 2019 -North Dakota has recently passed a bill that will allow any county to impose a local tax on short-term leasing...