Texas Executive Order Eliminates Hidden Double Tax on Tech Platforms, Protecting Businesses and Artisans
[Washington, D.C.] – [October 5, 2026] – Internet Works, a coalition representing established medium-sized technology companies, commends Comptroller Huffines and state leadership for listening to small business owners and signing an executive order directing the removal of online marketplace and platform fees from taxable data processing services under 34 Tex. Admin. Code 3.330.
The Comptroller’s decisive action eliminates a hidden administrative burden that increases costs for Texas small businesses and local artisans.
“With this decision, Comptroller Huffines has addressed a long-standing challenge that limits innovation and increases costs for small businesses and consumers,” said Peter Chandler, Executive Director of Internet Works. “By modernizing a policy that failed to reflect the diverse tech ecosystem, this action eliminates a hidden double tax, lowers costs for small sellers, and ensures that Middle Tech platforms can continue to invest in Texas.”
For decades, Texas’s data processing tax was understood to apply to traditional data entry and payroll services, not routine marketplace tools that connect buyers with local sellers. The 2025 administrative expansion of this rule effectively created a tax increase that resulted in a double taxation on the exact same transaction. Eliminating this restores fair competition and removes the cost-burden that fell directly onto Texas retailers, artisans, and independent sellers, penalizing them for competing in the digital age.
On behalf of Internet Works’ 34 member platforms, including Expedia, eBay, Etsy, TripAdvisor, and Whatnot, the coalition applauds state leadership for listening to small business owners and demonstrating pro-competition policies.
About Internet Works:
Internet Works is a coalition of 34 diverse members working together to right-size regulatory technology policy, to foster trust, and promote safety online so that the Internet remains a place of limitless possibility and innovation. For more information, please visit www.TheInternet.Works.