Ezel / Tax Rulings / TX
TX 8909L0956E13 Sales and/or Use Tax (State,Local,MTA) 1989-09-11

Were charges for searching national computer records and providing a person's current address taxable Texas information services?

Short answer: Yes. The company furnished current information under Rule 3.342(a)(2). The service did not qualify for Rule 3.342(d)(1)'s exemption because the address information was not proprietary and could be sold to other customers.

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This page answers the general question as of 1989. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1989
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 Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. 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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 company searched national computer records for the current addresses of clients' friends or relatives and reported any address it located.

Those charges were taxable information services because the company furnished current information under Rule 3.342(a)(2).

The Rule 3.342(d)(1) exemption did not apply. The information was not proprietary to one customer and could be sold to others.

Common questions

Was the address-search charge taxable? Yes.

Why was it an information service? It furnished current address information.

Why did the exemption fail? The information was not proprietary and could be sold to other customers.

Citations and references

  • 34 Tex. Admin. Code Rule 3.342(a)(2) and (d)(1)

Source

Original ruling text

September 11, 1989

Dear ***:

Thank you for your inquiry regarding the taxability of your services.

You state that your clients hire you to conduct a computer search for the
addresses of their friends or relatives. Your company uses a computer search
of national computer records and provides the addresses which are located.

The charges for your services are taxable because they are information services
as defined in the enclosed Comptroller's Rule 3.4342 (Information Services).
Specifically, you are furnishing current information as indicated in Rule 3.342
(a)(2).

Although Rule 3.342 (d)(1) provides an exemption for certain services, your
services don't qualify for this exemption because the information you provide
isn't proprietary. Furthermore, the information may be sold to others.

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

If you have any questions, please contact Tax Correspondence. You may call
toll free 1-800-252-5555, or our regular number is 512/463-4600. My extension
is 3-4662.

Sincerely,

Bob Jeffcoat
Tax Correspondence

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