Texas – Ruling Says Mobile App Company’s Service Charges on Discounted Fuel Purchases Constitute Taxable Data Processing

Taxable Data Processing Fees: The Texas Comptroller of Public Accounts ruled that the percentage-based fees charged by an out-of-state mobile application company to fuel stops for sales of discounted fuel constitute taxable data processing under Texas law.
Functionality of the Mobile App: The app facilitates transactions by listing fuel stop locations, prices, and amenities, generating confirmation codes for purchases, and compiling transaction reports, all of which involve data manipulation and storage activities defined as taxable data processing.
Clarification of Roles: The ruling clarified that the mobile app does not sell fuel directly to truck drivers, and the fuel stops remain responsible for all applicable fuel and sales taxes. Additionally, the company’s agreements confirm it is not a money transmitter or payment instrument seller, and there is no common ownership with the fuel stops.