Definition of Taxable Services in Texas
“Taxable services” is defined in Tax Code Section 151.0101 to include 17 broad categories of services.
Sec. 151.0101. “TAXABLE SERVICES”
(a) “Taxable services” means:
- Amusement services
- Cable television services
- Personal services
- Motor vehicle parking and storage services
- The repair, remodeling, maintenance, and restoration of tangible personal property, except:
- (A) Aircraft
- (B) A ship, boat, or other vessel, other than:
- (i) A taxable boat or motor as defined by Section 160.001
- (ii) A sports fishing boat
- (iii) Any other vessel used for pleasure
- (C) The repair, maintenance, and restoration of a motor vehicle
- (D) The repair, maintenance, creation, and restoration of a computer program, including its development and modification, not sold by the person performing the service
- Telecommunications services
- Credit reporting services
- Debt collection services
- Insurance services
- Information services
- Real property services
- Data processing services
- Real property repair and remodeling
- Security services
- Telephone answering services
- Internet access service
- A sale by a transmission and distribution utility, as defined in Section 31.002, Utilities Code, of transmission or delivery of service directly to an electricity end-use customer whose consumption of electricity is subject to taxation under this chapter.
Need Help with a Texas Sales Tax Audit?
Facing a sales tax audit in Texas? Contact our attorney for a consultation.
Frequently Asked Questions
What are “taxable services” in Texas?
Taxable services in Texas are defined under Tax Code Section 151.0101 and include 17 categories such as amusement services, telecommunications, credit reporting, insurance, and repair/remodeling of tangible personal property, with some exceptions.
Are all repair services taxable in Texas?
Not all repair services are taxable. Repairs to aircraft, certain boats, motor vehicles, and custom computer programs (when not sold by the service provider) are exempt from sales tax under specific conditions.
Is internet access considered a taxable service in Texas?
Yes, internet access service is listed as a taxable service under Texas law, along with other telecommunications-related services.
Are security and answering services taxable in Texas?
Yes, both security services and telephone answering services are included among the categories of taxable services.
Who should I contact if I’m facing a Texas sales tax audit?
If you are undergoing a Texas sales tax audit, it’s recommended to consult with a tax attorney experienced in state tax laws for guidance and representation.