Ezel / Tax Rulings / TX
TX 8710L0844B01 Sales and/or Use Tax (State,Local,MTA) 1987-10-29

Could a credit-reporting provider buy monthly microfiche credit information for resale, and were its credit-reporting charges taxable?

Short answer: Yes. The provider could issue a resale certificate for information transferred as part of its credit reports, and its credit-reporting charges were taxable.

Apply this to your situation

This page answers the general question as of 1987. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1987
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is a taxpayer-specific October 1987 Texas Comptroller letter about microfiche credit information and credit-reporting charges. It says the opinion may change if the facts differ. The letter states that credit-reporting charges became taxable October 1, 1987; verify current law before applying its historical treatment. STAR documents may no longer represent current policy even when not marked superseded. Identities are redacted. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The provider bought credit information on microfiche, received monthly updates, and used the information to provide credit reports. The Comptroller characterized the supplier's product as a taxable information service.

Because the provider transferred that information as an integral part of its credit-reporting service, it could give the supplier a resale certificate instead of paying tax on the purchase. The provider's own charges for credit reporting were taxable as of October 1, 1987.

What this means for you

The historical letter treated purchased information as bought for resale when the provider transferred it as an integral part of the taxable service sold to customers. It also treated the provider's credit-reporting charges as taxable.

Common questions

Was the microfiche information a taxable service? The letter said it appeared to be a taxable information service.

Could the provider give its supplier a resale certificate? Yes, because it transferred the information as an integral part of the credit-reporting service.

Were the provider's customer charges taxable? Yes, beginning October 1, 1987 under the letter.

Citations and references

  • No statute or rule number is cited in the ruling text.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

October 29, 1987

Dear ****:

This letter is to follow up our telephone conversation regarding your
purchase of credit information on microfiche which is updated on a monthly
basis and used in providing credit reports. It is my understanding that the
information is available on hard copy, but microfiche is chosen because it is
cheaper.

It appears that your supplier is providing you with a taxable information
service. However, because you are transferring the information as an integral
part of a credit reporting service, you may give your supplier a resale
certificate in lieu of tax.

Your charges for credit reporting became taxable as of October 1, 1987.

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

If you have any questions or need more information, please call me at
1-800-252-5555 toll free from anywhere in Texas. The regular number is
512/463-4600. You may write me at the Tax Policy Division.

Sincerely,
Al Van Allen
Tax Policy Division

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