By Ted Stockbridge and Garry Miles
Prior to 2002 the Texas Comptroller ruled that non-taxable services would become taxable if they were provided in connection with the sale of tangible personal property (or goods) and the charges for the services and goods were presented on a single invoice. In late 2001, the Comptroller announced a change in its policies on "mixed transactions," so that under some circumstances the non-taxable services would remain non-taxable.
This change in policy may be of particular interest in connection with software licenses, since many companies purchase implementation and training services with software from the same provider. It is important to consider these new policies in connection with both new and prior software acquisitions because payments of Texas sales and use taxes may be reduced on future purchases or claimed as refunds on prior purchases.
