Tex. Tax Code § 151.0035 "Data Processing Service"

• Library: Texas Statutes
• Edition: 2023
• Currency: Current with legislation from the 2023 Regular and Special Sessions signed by the Governor as of November 21, 2023.
• Year: 2023
• Citation: Tex. Tax Code § 151.0035

(a) "Data processing service" includes:

(1) word processing, data entry, data retrieval, data search, information compilation, payroll and business accounting data production, and other computerized data and information storage or manipulation;

(2) the performance of a totalisator service with the use of computational equipment required by Subtitle A-1, Title 13, Occupations Code (Texas Racing Act); and

(3) the use of a computer or computer time for data processing whether the processing is performed by the provider of the computer or computer time or by the purchaser or other beneficiary of the service.

(b) "Data processing service" does not include:

(1) the transcription of medical dictation by a medical transcriptionist;

(2) services exclusively to encrypt electronic payment information for acceptance onto a payment card network described by Subdivision (3)(E) to comply with standards set by the Payment Card Industry Security Standards Council; or

(3) settling of an electronic payment transaction by:

(A) a downstream payment processor or point of sale payment processor that routes electronic payment information to an entity described by Paragraph (C) or (E);

(B) a person who is engaged in the business of money transmission and required to obtain a license under Section 151.302(a), Finance Code;

(C) a federally insured financial institution, as defined by Section 201.101, Finance Code, that is organized under the laws of this state, another state, or the United States, or an affiliate of the institution;

(D) a person who has entered into a sponsorship agreement with an entity described by Paragraph (C) for the purpose of settling that entity's electronic payment transactions through a payment card network; or

(E) a payment card network that allows a person to accept a specific brand of debit or credit card by routing information and data to settle an electronic payment transaction.