Texas comptroller hosts small business roundtable on tax impact

AUSTIN — Texas Comptroller Don Huffines recently hosted a roundtable discussion with online marketplace sellers, restaurant owners, and physicians to hear firsthand how the state’s definition of its data processing services tax is impacting their businesses.

Participants included small business owners who sell their products on platforms such as Amazon, eBay, and Etsy; restaurant owners; and physicians who pay to access electronic medical records, all of whom are subject to paying sales tax due to an interpretation of the definition of data processing.

“I’ve heard repeatedly that the controversial interpretation of how this tax is applied is hurting Texas businesses and making them less competitive,” Huffines said. “It is also hurting every Texas restaurant that uses delivery platforms like Uber Eats, DoorDash, or Grubhub.

He also noted that doctors are being charged a tax to access the electronic medical records of their patients.

“I’m grateful these business owners took the time to meet with me on this important topic because fair tax policy starts with an accurate picture of what is happening in the marketplace, not with assumptions made by bureaucrats in Austin,” Huffines said.

"I've said from day one that taxpayers deserve fair, consistent, and clearly defined rules," Huffines said. “The feedback from the roundtable will be evaluated carefully as we work to ensure every Texas business is treated fairly. We are going to deliver results with a private-sector mindset and operate at the speed of business to solve problems and fix what is broken.” 

Huffines, who was sworn into office on Aug. 1, has ordered a performance review of all agency operations.