In a letter release, the Texas Comptroller of Public Accounts addressed the taxability of landman services. Landman services are considered to be “services necessary to negotiate or secure land and or mineral rights for acquisition or trade.” This includes acquiring leases, drafting contracts and agreements and ensuring that all transactions fall inline with governmental regulations. The Texas Comptroller found that these services were non-taxable services, but the Landman service providers were required to pay tax on all supplies including on 80 percent of any data processing and information services that were purchased to perform their services. If a Landman were to only gather and compile information, they would be considered to be providing a taxable information service (and not a non-taxable services) and would be required to charge tax on 80% of their charge. If the Landman subcontracts information gathering services out to another Landman, it is considered a purchase of taxable information services and not a subcontract. (Letter No. 200703984L, Texas Comptroller of Public Accounts, March 29, 2007, Released Nov 2007