A taxpayer, who is a nationwide insurance provider, was denied a refund of taxes paid for data processing services. The vendor provides a claims distribution system that allows healthcare providers and intermediaries to submit claims electronically to the insurance provider. In this system, the vendor is responsible for the reception, storage, retrieval, and processing of information. These services are specifically excluded from the definition of telecommunications and included in the definition of taxable data processing services. The taxpayer’s other contention was that the services did not benefit an identifiable segment of the taxpayer’s business in Texas. This was denied because the vendor’s services eased the administrative burdens associated with healthcare claims submission, processing, and payments in Texas. The court also found that services performed outside the state for use in the state are not applicable to the multi-state benefit exemption. (Decision, Hearing No. 44,389 Texas Comptroller of Public Accounts, January 2, 2008, received September 2008)