PRESS RELEASE: Texas Comptroller Huffines Hosts Small Business Roundtable on Impact of Controversial Tax

(AUSTIN) — Texas Comptroller Don Huffines recently hosted a roundtable discussion with online marketplace sellers, restaurant owners, and physicians to hear firsthand how the state's controversial definition of its data processing services tax is impacting their businesses. The session is part of Huffines’ ongoing Taxpayer First Project, an initiative to ensure fairness, transparency, and respect in how the state administers its tax laws.

Participants included small business owners who sell their products on platforms such as Amazon, eBay, and Etsy; restaurant owners; and physicians who pay to access electronic medical records — all of whom are subject to paying sales tax due to a controversial interpretation of the definition of data processing.

“I’ve heard repeatedly that the controversial interpretation of how this tax is applied is hurting Texas businesses and making them less competitive,” Huffines said. “It is also hurting every Texas restaurant that uses delivery platforms like Uber Eats, DoorDash, or Grubhub. Additionally, doctors are being charged a tax to access the electronic medical records of their own patients. That drives up the cost of healthcare in Texas. After listening to these hard-working Texans, it is clear we need a comprehensive review of how this tax is applied.

“I’m grateful these business owners took the time to meet with me on this important topic because fair tax policy starts with an accurate picture of what is happening in the marketplace, not with assumptions made by bureaucrats in Austin.”

Huffines was sworn into office on Aug. 1 and immediately ordered a performance review of all agency operations. 

"I've said from day one that taxpayers deserve fair, consistent, and clearly defined rules," Huffines said. “The feedback from the roundtable will be evaluated carefully as we work to ensure every Texas business is treated fairly. We are going to deliver results with a private-sector mindset and operate at the speed of business to solve problems and fix what is broken.”