The Texas Court of Appeals ruled that a law firm’s purchases of packages containing the legal documents necessary to execute residential mortgage loans should be classified as purchases of data processing services, which is subject to sales tax. The loan package in question includes “a promissory note, deed of trust, and disclosures required by state and federal law, among other documents, and is ‘maybe a hundred pages ‘.” Furthermore, Texas defines data processing services as “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.” Previously, the law firm argued that the purchased services should not be subject to sales tax and a trial court determined they were entitled to a refund, but this was overturned by the Comptroller and the Texas Court of Appeals due to lack of sufficient evidence to support multiple findings of fact. (Texas Court of Appeals, Hegar v. Black, Mann, & Graham LLP; No. 03-20-00391-CV; No. D-1-GN-19-001725)