Ezel / Tax Rulings / TX
TX 8802L0868E02 Sales and/or Use Tax (State,Local,MTA) 1988-02-01

Did Texas's initial February 1988 response treat typing on a memory-capable typewriter as taxable word processing?

Short answer: Yes. It treated the typing as taxable word processing under Rule 3.330, while résumé preparation and consultation were nontaxable. A later official response changed the typing conclusion after clarification.

Apply this to your situation

This page answers the general question as of 1988. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1988
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 an official February 1, 1988 Texas Comptroller of Public Accounts letter applying Rule 3.330, published on STAR. A later official STAR source, ruling 8803L0865A07, states that after the requester clarified the facts the described typing service was not taxable data processing; this initial conclusion should therefore not be used as the final answer for that clarified service. Do not treat either historical letter as current law without verification. STAR letters can support detrimental reliance only for the taxpayer directly issued the letter and may no longer represent current policy. Taxpayer-identifying details 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 February 1 response treated résumé preparation and consultation as nontaxable but classified typing on an IBM Wheelwriter with memory as taxable word processing under Rule 3.330. The Comptroller said the device could store, retrieve, and process data and sent a sales-tax permit application.

A later official response, ruling 8803L0865A07, changed the typing conclusion after the requester clarified the service. This page records the initial answer but does not present it as the final conclusion for the clarified facts.

What this means for you

The source shows why later clarification matters. The initial response relied heavily on the machine's memory capability; the later official response changed the result for the clarified service.

Common questions

Was résumé preparation taxable in this letter? No.

Was consultation taxable? No.

Did the initial letter tax the typing service? Yes.

Is that the final answer for the clarified service? No. Ruling 8803L0865A07 later changed it.

Citations and references

  • 34 Tex. Admin. Code Rule 3.330, cited in the initial response.

Source

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774

BOB BULLOCK
COMPTROLLER February 1, 1988

Dear ***:

Thank you for your recent letter concerning the taxability of your
services.

According to your letter you provide resume preparation and consultation
services. You also provide typing services which are performed on an IBM
Wheelwriter typewriter which has memory capabilities. The resume
preparation
and consultation services are not taxable. The typing service is a
taxable
service. Our definition of a computer is "a programmable electronic
device
that can store, retrieve, and process data". Based on this definition
your
typing service is considered word processing and is therefore a taxable
service.
Enclosed is Rule 3.330 relating to data processing services.

An application for a sales tax permit will be mailed under separate
cover.

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 our
toll-free
number 1-800-531-5441. The regular number is 512/463-4600. You may
write me
at the Tax Policy Division.

Sincerely,
Julie Pesl
Tax Policy Division

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