Ezel / Tax Rulings / TX
TX 8805L0924G13 Sales and/or Use Tax (State,Local,MTA) 1988-05-16

Was a pre-screening service taxable as credit reporting in Texas, and how did the Comptroller source the service?

Short answer: Yes. The Comptroller treated pre-screening as a credit-reporting service and sourced it to the delivery point; Texas tax was not due when delivery occurred outside Texas.

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 1988 Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. It states the credit-reporting classification and delivery-point sourcing used when issued; verify current Texas law before applying that treatment today. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
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 Comptroller agreed that pre-screening was taxable as a credit-reporting service. The service was sourced according to its point of delivery.

When delivery occurred outside Texas, the letter said Texas tax was not due. The Comptroller also said it had not considered it necessary to state this treatment in the rule.

What this means for you

Under this brief 1988 letter, both classification and delivery location mattered. A pre-screening service fell within credit reporting, but an out-of-state delivery was outside the Texas tax stated in the response.

Common questions

Was pre-screening a credit-reporting service? Yes.

What determined whether Texas tax was due? The point of delivery.

Was Texas tax due when the service was delivered outside Texas? No.

Citations and references

The letter did not cite a rule or statute by number. It said the Comptroller did not think this treatment needed to be included in the rule.

Source

Original ruling text

Comptroller of Public Accounts
State of Texas
Bob Bullock Austin, Texas 78774 LBJ

May 16, 1988

Dear *:

In answer to your letter of May 12, 1988, you are correct. Pre-screening
will be taxed as a credit reporting service based on point of delivery.
If delivery is outside the State, Texas tax will not be due.

We did not think it was necessary to include this in the rule.

If you have any additional questions, please feel free to contact me.

Sincerely,
Dan Pearson
Deputy Comptroller

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