Ezel / Tax Rulings / TX
TX 8911L1019C07 Sales and/or Use Tax (State,Local,MTA) 1989-11-15

Were charges for computer-calculating survey data and filing completion reports taxable when part of professional engineering services?

Short answer: No. The computer was merely a tool used to perform nontaxable professional engineering rather than a separately sold data-processing service, and the related state-office completion-report filing charge was also nontaxable.

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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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 firm entered field data into its computer programs to produce a survey completion report.

That charge was not taxable data processing because the computer was only a tool used to perform nontaxable professional engineering. The separate charge for filing completion reports with the appropriate state office was likewise part of the professional engineering service and was not taxable.

Common questions

Was the computer-calculation charge taxable data processing? No.

Why not? The computer facilitated the professional engineering service rather than being the service sold.

Was the report-filing charge taxable? No.

Citations and references

  • 34 Tex. Admin. Code Rule 3.330

Source

Original ruling text

November 15, 1989

Dear **:

Your letter of November 10, 1989, regarding the taxability of
certain survey-related charges has been referred to me. I will
respond below to each of your inquiries.

The first item in question is a "Computer Calculated Survey
Charge" that represents a charge for putting your field data
through your computer programs to obtain a survey completion
report. This charge is not taxable because you are using the
computer to facilitate the performance of professional engineering
service, which is not a taxable service. In this instance, the
computer is used as a tool to perform your service. Please refer
to the definition of data processing services in the enclosed
Sales Tax Rule 3.330.

The second item questioned is a "Filing of Completion Reports with
Appropriate State Office" charge. This charge also represents a
charge related to your professional engineering services.
Therefore, you would not be required to collect tax on this fee.

The above responses are based on facts provided. Additional or
different facts may cause this response to change. If you have
any further questions, please contact Tax Correspondence. You may
call toll-free 1-800-252-5555. My extension is 34608.

Sincerely,

Brad Gabbart
Tax Correspondence

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