Texas Comptroller Don Huffines has issued an executive order revising the administrative rules governing taxable data processing services to exclude marketplace and platform fees. Following a 2025 interpretation of a longstanding tax rule, Texas began imposing tax on fees that sellers paid to platforms such as Amazon, DoorDash, and short-term rental sites to reach customers online. This tax was imposed in addition to any applicable sales tax on the underlying purchase, creating what the Comptroller’s news release described as taxation of the same transaction twice.
The revised rule applies to fees charged to retailers associated with offering products on platforms such as Amazon or Etsy; prepared food and grocery delivery through providers such as DoorDash or Uber Eats; short-term lodging; ride-hailing and other transportation services; vehicle rental and sharing; pet care and pet sitting; and household or personal errand services. This change is another step in Don Huffines’s Taxpayer First Project, which is intended to promote fairness, transparency, consistency, and respect in Texas tax administration. The Comptroller’s news release also notes that additional changes may be proposed in the future.
This development is welcome news for Texas taxpayers, particularly small businesses that may have borne a disproportionate share of the burden associated with the now-repealed tax. Although individual consumers may see little change in routine retail purchases, the revision removes a notable cost of operating a business in the modern economy.
Taxpayers that previously remitted this tax should retain appropriate records and ensure that any amounts due for periods preceding the effective date of the new order are properly reported and paid. The executive order was effective immediately upon signing on September 30, 2026, and calls for the proposed amendment to the rule to be filed with the Texas Secretary of State and follow all applicable procedures such as publishing in the Texas Register and a 30-day public comment period. (News Release, Texas Comptroller of Public Accounts, September 30, 2026)