Texas Rules Warranty Claim Reimbursements Are Not Taxable Data Processing Services

Responding to an inquiry submitted by a company providing services to assist motor vehicle dealers when a dealer makes a cost reimbursement claim for repairs provided to the dealer’s customer under the manufacturer’s warranty, a Texas Comptroller of Public Accounts private letter ruling concludes that, based on the provided facts, the company’s warranty claim reimbursement services do not constitute taxable data processing services under Texas sales tax law.

In doing so, the ruling explains that because the company does not provide a database, store or manipulate the data, or offer a portal for the data, and only reviews the claims entered in the manufacturer’s system by the dealer’s employees, the company is merely providing services to assist dealers in making reimbursement claims for repairs performed under a manufacturer’s warranty.

Such “claims reimbursement services” are not enumerated as taxable under Texas sales tax law.
Private Letter Ruling No. 20250710150515, Tex. Comptroller of Public Accounts (12/19/25).