Petition Closed

Current tax laws in the State of Texas have created a hostile environment for innovation thus impeding economic development. The Comptroller has applied exceedingly broad interpretations to the ill-conceived and outdated Data Processing and Information Services rules to discriminately tax virtually all web related professional services including custom programming, marketing and consulting. These unique laws are transforming Texas into the most technology unfriendly business environment in the United States.

If you provide these services and are in the majority of consultants that believe they are not taxable as professional services, you will likely be facing an audit and huge assessment for back taxes. If you have purchased a website, online marketing or custom application incorporating any web technology and did not pay sales tax, when audited you will be required to pay use tax.

In the near future, web related professionals will find themselves unable to compete with out-of-state and offshore alternatives.  The resulting exodus of skilled professionals will decimate Texas' technology industry.

The good news is that there are many state officials who want Texas to be a global technology leader. While the state has been aware of the hazards of these laws for over a decade, the unprecedented growth of the Internet both in scope and application has made the impact of these hazards profound in today’s economy.

It is up to us to remind law makers that if you broadly and discriminately tax innovation, you destroy it. Texas and Texans cannot afford to lose their technological advantage.

Sign the petition letter to let the governor and policy makers know you support continued innovation in Texas.

To learn more visit: Keep Texas Innovative








Letter to
Governor Rick Perry
State Senator Brian Birdwell
State Representative Ron Reynolds
and 18 others
State Representative Angie Button
State Representative Sergio Munoz
State Representative Jim Murphy
State Representative Pat Fallon
State Representative Borris Miles
State Representative Kenneth Sheets
State Representative John Davis 2
State Representative Hubert Vo
State Representative Donna Howard
State Senator Kevin Eltife
State Senator Judith Zaffirini
State Senator Troy Fraser
State Senator Kelly Hancock
State Senator Larry Taylor
State Senator Kirk Watson
State Representative Steve Toth
State Representative Terry Canales
Texas Governor
I just signed the following petition addressed to: Texas Legislature and Governor Rick Perry.

Repeal the Data Processing and Information Services tax rules.

I believe that it is essential that Texas has a free market for innovation in order for Texas companies to compete in the global market. As such, I believe that the State of Texas should not unfairly burden in-state organizations and consultants with a higher cost to acquire and provide modern modes of technology innovation.

I request that the state end all policies that:
- Creates a competitive disadvantage for Texas companies and entrepreneurs by making it more expensive than other states to acquire web related innovation;
- Creates an inequality between large and small businesses in the cost to acquire innovation;
- Creates discriminatory taxes against professional service providers such as marketers and programmers who use specific web technologies over those providing similar services using other mediums

In particular, I request that the recommendations of the Subcommittee on General Taxability of Internet Transactions to repeal the Data Processing and Information Services tax rules be enacted.

I further request that the State of Texas not enact any new policies that makes it more expensive for in-state organizations to acquire and provide web based innovation than other jurisdictions.


Keep Texas Innovative started this petition with a single signature, and now has 57 supporters. Start a petition today to change something you care about.