Tex. Tax Code § 151.002 — APPLICABILITY OF DEFINITIONS, ETC

The definitions and other provisions of this chapter relating to the collection, administration, and enforcement of the taxes imposed by this chapter, including the requirements for sales tax permits, apply to the parties to a sale of a taxable item that is exempted from the taxes imposed by this chapter but that is subject to the taxes imposed by a city under Chapter 321 of this code. Acts 1981, 67th Leg., p. 1545, ch. 389, Sec. 1, eff. Jan. 1, 1982. Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.27(b)(1), eff. Aug. 28, 1989. Sec. 151.0028. "AMUSEMENT SERVICES". (a) "Amusement services" means the provision of amusement, entertainment, or recreation, but does not include the provision of educational or health services if prescribed by a licensed practitioner of the healing arts for the primary purpose of education or health maintenance or improvement. (b) "Amusement services" includes membership in a private club or organization that provides entertainment, recreational, sports, dining, or social facilities to its members. (c) "Amusement services" does not include services provided through coin-operated machines that are operated by the consumer. Added by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 7, Sec. 3, eff. Oct. 2, 1984. Amended by Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 1, pt. 4, Sec. 1. Amended by: Acts 2019, 86th Leg., R.S., Ch. 638 (S.B. 1525 ), Sec. 1, eff. June 10, 2019. Sec. 151.003. "BUSINESS". "Business" means an activity of or caused by a person for the purpose of a direct or indirect gain, benefit, or advantage. Acts 1981, 67th Leg., p. 1545, ch. 389, Sec. 1, eff. Jan. 1, 1982. Sec. 151.0031. "COMPUTER PROGRAM". "Computer program" means a series of instructions that are coded for acceptance or use by a computer system and that are designed to permit the computer system to process data and provide results and information. The series of instructions may be contained in or on magnetic tapes, punched cards, printed instructions, or other tangible or electronic media. Added by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 6, Sec. 1, eff. Oct. 2, 1984. Sec. 151.0033. "CABLE TELEVISION SERVICE". "Cable television service" means the distribution of video programming with or without use of wires to subscribing or paying customers. Added by Acts 1984, 68th Leg., 2nd C.S., ch. 31, art. 7, Sec. 4, eff. Oct. 2, 1984. Sec. 151.0034. "CREDIT REPORTING SERVICE". "Credit reporting service" means assembling or furnishing credit history or credit information relating to any person. Added by Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 1, pt. 4, Sec. 2. Sec. 151.0035. "DATA PROCESSING SERVICE". (a) "Data processing service" includes: (1) word processing, data entry, data retrieval, data search, information compilation, payroll and business accounting data production, and other computerized data and information storage or manipulation; (2) the performance of a totalisator service with the use of computational equipment required by Subtitle A-1, Title 13, Occupations Code (Texas Racing Act); and (3) the use of a computer or computer time for data processing whether the processing is performed by the provider of the computer or computer time or by the purchaser or other beneficiary of the service. (b) "Data processing service" does not include: (1) the transcription of medical dictation by a medical transcriptionist; (2) services exclusively to encrypt electronic payment information for acceptance onto a payment card network described by Subdivision (3)(E) to comply with standards set by the Payment Card Industry Security Standards Council; or (3) settling of an electronic payment transaction by: (A) a downstream payment processor or point of sale payment processor that routes electronic payment information to an entity described by Paragraph (C) or (E); (B) a person who is engaged in the business of money transmission and required to obtain a license under Section 152.101 , Finance Code; (C) a federally insured financial institution, as defined by Section 201.101 , Finance Code, that is organized under the laws of this state, another state, or the United States, or an affiliate of the institution; (D) a person who has entered into a sponsorship agreement with an entity described by Paragraph (C) for the purpose of settling that entity's electronic payment transactions through a payment card network; or (E) a payment card network that allows a person to accept a specific brand of debit or credit card by routing information and data to settle an electronic payment transaction. (c) For purposes of Subsection (b)(3): (1) "Downstream payment processor" means a person described by 7 T.A.C. Section 33.4(c), as that provision existed on January 1, 2021. (2) "Point of sale payment processor" means a person described by 7 T.A.C. Section 33.4(d), as that provision existed on January 1, 2021. (3) "Settling of an electronic payment transaction" means the authorization, clearing, or funding of a payment made by credit card, debit card, gift card, stored value card, electronic check, virtual currency, loyalty program currency such as points or miles, or a similar method. The term does not include charges by a marketplace provider, as that term is defined by Section 151.0242 . (d) "Data storage," as used in this section, does not include a classified advertisement, banner advertisement, vertical advertisement, or link when the item is displayed on an Internet website owned by another person. Added by Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 1, pt. 4, Sec. 3. Amended by Acts 1997, 75th Leg., ch. 1275, Sec. 53, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1040, Sec. 11, eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 209, Sec. 16, eff. Oct. 1, 2003. Amended by: Acts 2017, 85th Leg., R.S., Ch. 963 (S.B. 1969 ), Sec. 2.12, eff. April 1, 2019. Acts 2021, 87th Leg., R.S., Ch. 539 (S.B. 153 ), Sec. 1, eff. October 1, 2021. Acts 2023, 88th Leg., R.S., Ch. 277 (S.B. 895 ), Sec. 2.06, eff. September 1, 2023. Sec. 151.0036. "DEBT COLLECTION SERVICE". (a) "Debt collection service" means activity to collect or adjust a delinquent debt, to collect or adjust a claim, or to repossess property subject to a claim. (b) "Debt collection service" does not include: (1) the collection of: (A) a judgment by an attorney or by a partnership or professional corporation of attorneys if the attorney, partnership, or corporation represented the person in the suit from which the judgment arose; or (B) court-ordered child support or medical child support; or (2) a service provided by a person acting as a trustee in connection with the foreclosure sale of real property under a lien created by a mortgage, deed of trust, or security instrument. (c) "Debt collection service" includes the service performed for which a fee is collected under Section 3.506 , Business & Commerce Code. The person collecting the check shall add the amount of the tax to the fee in accordance with Section 151.052 and shall collect the fee from the drawer or endorser of the check. Added by Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 1, pt. 4, Sec. 4. Amended by Acts 1991, 72nd Leg., ch. 705, Sec. 9, eff. Sept. 1, 1991; Acts 1995, 74th Leg., ch. 341, Sec. 3.06, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 1000, Sec. 5, eff. Oct. 1, 1995; Acts 2001, 77th Leg., ch. 1151, Sec. 1, 2(b), eff. July 1, 2001; Acts 2001, 77th Leg., ch. 1420, Sec. 2.001(d), eff. Sept. 1, 2001. Sec. 151.0038. "INFORMATION SERVICE". (a) "Information service" means: (1) furnishing general or specialized news or other current information, including financial information, unless furnished to: (A) a newspaper or to a radio or television station licensed by the Federal Communications Commission; or (B) a member of a homeowners association of a residential subdivision or condominium development, and is furnished by the association or on behalf of the association; or (2) electronic data retrieval or research. (b) In this section, "newspaper" has the meaning assigned by Section 151.319 (f). (c) "Information service" does not include the furnishing of an academic transcript. Added by Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 1, pt. 4, Sec. 5. Amended by Acts 1991, 72nd Leg., ch. 705, Sec. 10, eff. Sept. 1, 1991; Acts 1995, 74th Leg., ch. 1000, Sec. 6, eff. Oct. 1, 1995. Amended by: Acts 2023, 88th Leg., R.S., Ch. 140 (S.B. 65 ), Sec. 1, eff. October 1, 2023. Sec. 151.0039. "INSURANCE SERVICE". (a) Except as provided in Subsection (b), "insurance service" means insurance loss or damage appraisal, insurance inspection, insurance investigation, insurance actuarial analysis or research, insurance claims adjustment or claims processing, or insurance loss prevention service. (b) "Insurance service" does not include: (1) insurance coverage for which a premium is paid or commissions paid to insurance agents for the sale of insurance or annuities; (2) a service performed on behalf of an insured by a person licensed under Chapter 4102 , Insurance Code; (3) a service performed by a certified public accountancy firm, if less than one percent of the firm's total revenue in the prior calendar year is from services in this state that would otherwise constitute insurance service under Subsection (a); (4) a service performed on behalf of a certified public accountancy firm by an owner of the firm or a member of the firm's affiliated group, if less than one percent of the owner's or member's total revenue in the prior calendar year is from services in this state that would otherwise constitute insurance service under Subsection (a); (5) a medical or dental billing service performed before the original submission of: (A) a medical or dental insurance claim related to health or dental coverage; or (B) a claim related to health or dental coverage made to a medical assistance program funded by the federal government, a state government, or both; or (6) a medical service, examination, or test required or authorized under Chapter 408 , Labor Code, for the purpose of determining the appropriate level of benefits under that chapter. (c) In this section: (1) "Affiliated group" has the meaning assigned by Section 171.0001 . (2) "Certified public accountancy firm" has the meaning assigned by Section 901.002 , Occupations Code. (3) "Medical or dental billing service" means assigning codes for the preparation of a medical or dental claim, verifying medical or dental insurance eligibility, preparing a medical or dental claim form for filing, and filing a medical or dental claim. Added by Acts 1987, 70th Leg., 2nd C.S., ch. 5, art. 1, pt. 4, Sec. 6. Amended by: Acts 2015, 84th Leg., R.S., Ch. 748 (H.B. 1841 ), Sec. 1, eff. October 1, 2015. Acts 2017, 85th Leg., R.S., Ch. 68 (S.B. 1083 ), Sec. 1, eff. January 1, 2018. Acts 2021, 87th Leg., R.S., Ch. 1 (H.B. 1445 ), Sec. 1, eff. January 1, 2022. Acts 2021, 87th Leg., R.S., Ch. 1 (H.B. 1445 ), Sec. 2, eff. January 1, 2022. Acts 2023, 88th Leg., R.S., Ch. 1159 (S.B. 1122 ), Sec. 1, eff. June 18, 2023.