Texas Comptroller Moves to Untax Marketplace Fees
Comptroller Don Huffines signed an executive order directing staff to propose removing marketplace and platform commissions from taxable "data processing services," reopening refund questions.
On September 30, 2026, Texas Comptroller Don Huffines signed an executive order directing the agency to propose an amendment to Rule 3.330 that would remove marketplace and platform fees from the definition of "data processing services" subject to sales and use tax. A 2025 amendment had formalized the position that marketplace commissions could themselves be a taxable data processing service, producing, per the publishing firm's account, tax on as much as 130% of a marketplace sale. The announced proposal would cover online retail marketplaces, prepared food and grocery delivery, short-term lodging, ride-hailing and other transportation, vehicle rental or sharing, pet care, and household and personal services, and signals a wider review of the data processing tax. The order itself changes nothing: the comptroller must file a proposed amendment with the Texas secretary of state for publication in the Texas Register, opening a 30-day public comment period. Until adoption, exposure in the covered categories is unchanged. Tax and litigation counsel for platforms, delivery and gig-economy operators should inventory prior concessions, assessments and unrefunded payments, and evaluate refund or protest routes. Watch the Texas Register filing and comment docket, plus any movement in other states.