Texas Letter Ruling Says College Testing and Assessment Services are Not Taxable Despite Data Processing Aspects

A letter ruling involving a company’s computer-based in-person testing service that provides an overall assessment of a student’s readiness for college concludes that such services are not subject to Texas sales and use tax because they are not enumerated as taxable under state law; however, the company owes sales or use tax on taxable data processing services used to perform the non-taxable services.

Source Deloitte

 

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