Ezel / Tax Rulings / TX
TX 9006L1027E03 Sales and/or Use Tax (State,Local,MTA) 1990-06-20

Could a business keep purchase orders and other records on optical or laser disks instead of paper for Texas audit purposes?

Short answer: Yes. The Comptroller and Audit Division accepted optical or laser-disk recordkeeping if the business maintained backup copies and supplied sufficient equipment for auditors to examine the records on request.

Apply this to your situation

This page answers the general question as of 1990. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1990
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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 business could maintain records such as purchase orders on optical or laser disks.

Two conditions applied: the company had to keep backup copies of the disks and provide sufficient equipment for Comptroller personnel to examine the records when requested.

Common questions

Were optical or laser disks acceptable? Yes.

Were backups required? Yes.

Who had to provide viewing equipment? The business maintaining the records.

Source

Original ruling text

June 20, 1990

Dear **:

After our phone conversation, I discussed your facts a number
of folks in the agency including our Audit Division.

We have no problem with your firm maintaining business records
such as purchase orders on optical/ laser disks provided that
you:

  • maintain back-up copies of the disks and
  • provide sufficient equipment for our people to examine
    the records upon request.

This opinion is based on the facts you presented. Other facts,
though similar, may yield different results.

If you have questions or need more information, please call
our toll- free number 1- 800-531-5441. My direct line number
is 463-4680 [FAX (512) 475-0900). You may write to me in care
of Taxability Section.

Sincerely,

Al Van Allen
Taxability Section
Legal Services Division

DATE: June 20, 1990
TO: Al Van Allen
FROM: Ledford Kelly
SUBJECT: ** Request

Eddie Coats and I both have reviewed the request by COMPANY A
to maintain their business records on optical/laser disks and
see no material problems with them using this means of storage.
We would suggest that they have appropriate backup devices and
that our people will be allowed sufficient equipment to review
the information when needed.

As a sidelight, we are looking at purchasing this storage media
for backup to our LAN in Headquarters.

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