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 The Comptroller has applied exceedingly broad interpretations to the ill-conceived and outdated Data Processing and Information Services rules to discriminately tax virtually all web related professional services including custom programming, marketing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