Ezel / Tax Rulings / TX
TX 8911L1024C11 Sales and/or Use Tax (State,Local,MTA) 1989-11-15

Was a charge to interface application software products purchased from a third party subject to Texas sales tax?

Short answer: No. The Comptroller said the described third-party software interface work was not a taxable service under the tax law then in effect.

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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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 taxpayer would interface application software products that the customer had purchased from a third party.

The Comptroller said that interface service was not included in the taxable-service list under the law then in effect. The letter did not address software sold by the interface provider or other programming arrangements.

Common questions

Was the interface charge taxable? No.

Whose software was involved? Application products bought from a third party.

Source

Original ruling text

November 15, 1989

Dear ****:

Thank you for your letter concerning tax on charges to interface
application software products.

I understand CORP A may be asked to interface with CORP B certain
applications software products purchased from a third party. This
service is not a taxable service as defined in the tax law. I'm
enclosing a copy of the bill which excluded this type of service
from the list of taxable services.

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

Thank you for your patience. If you have any questions or need more
information, please call me. The toll-free number is 1-800- 531-5441.
The regular number is 512/463-4614. Or you may write me at the
Taxability Section of Legal Division. [(FAX) 512-474- 1643]

Sincerely,

Adina Whittemore
Taxability Section
Legal Division

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