Sales Tax Policy

In accordance with Texas state law, ECGsource's online subscription-based curriculum is primarily instructional in nature and is not subject to Texas sales and use tax.

Section 151.0028 ("Amusement Services") defines an amusement service as "the provision of amusement, entertainment, or recreation, but does not include the provision of educational or health services if prescribed by a licensed practitioner of the healing arts for the primary purpose of education or health maintenance or improvement." Rule 3.298 (Amusement Services) explains that "nonamusement services" include "activities that are primarily instructional in nature…." Rule 3.298(a)(2). The Comptroller has also issued guidance stating that an online education platform through which a taxpayer provided instruction by streaming pre-recorded lectures taught by professors from accredited universities was for the primary purpose of education and not subject to tax. See STAR Accession No. 201809009L (Sept. 11, 2018).