Tex.
Tax Code Section 151.002
Applicability of Definitions, Etc
(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.(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 (Money Transmission License Required), Finance Code;(C)
a federally insured financial institution, as defined by Section 201.101 (Definitions), 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 (Marketplace Providers and Marketplace Sellers).(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.(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 (Processing Fee by Holder of Payment Device), Business & Commerce Code. The person collecting the check shall add the amount of the tax to the fee in accordance with Section 151.052 (Collection by Retailer) and shall collect the fee from the drawer or endorser of the check.(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 (Newspapers and Property Used in Newspaper Publication)(f).(c)
“Information service” does not include the furnishing of an academic transcript.(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 (Public Insurance Adjusters), 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 (Workers’ Compensation Benefits), 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 (General Definitions).(2)
“Certified public accountancy firm” has the meaning assigned by Section 901.002 (General Definitions), 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.
Source:
Section 151.002 — Applicability of Definitions, Etc, https://statutes.capitol.texas.gov/Docs/TX/htm/TX.151.htm#151.002
(accessed Mar. 23, 2024).