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ARTICLE · 15 OCTOBER 2026

That Was Fast: Texas Comptroller Takes First Step To Curtail Data Processing Tax

Holland & Knight
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Texas Comptroller Don Huffines has issued an executive order directing his office to amend Rule 3.330 to remove marketplace and platform fees from the definition of taxable data processing services, potentially ending what he calls a "hidden double tax" on online marketplace sellers, food delivery apps, ride-hailing services, and other platform-based businesses.

United StatesTax
Sam Megally
Sam Megally
William J. LeDoux
William J. LeDoux
Cindy Ohlenforst
Cindy Ohlenforst
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Highlights

  • Texas Comptroller Don Huffines has signed an executive order that directs his office to propose amending Rule 3.330 so that marketplace and platform fees are removed from the definition of "taxable data processing services."
  • The proposed amendment would end the tax on marketplace fees in several sectors, including online marketplace sellers, food and grocery delivery, short-term lodging, ride-hailing and transportation, vehicle rental and sharing, and pet care, as well as household, personal and errand-running services.
  • The proposed amendment will be published in the Texas Register, followed by a 30-day public comment period. Affected businesses should consider submitting comments.

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