Three weeks after unveiling a directive to remove the state’s data‑processing tax on fees charged by virtual marketplaces, Texas Comptroller Don Huffines announced three additional measures. The new directives target a tax on medical‑record requests, the use of state grant money for Flock surveillance cameras, and the inclusion of diversity, equity and inclusion (DEI) provisions in state contracts.
Tax relief for online sellers and buyers
Huffines’ first directive instructs his office to begin rulemaking that would stop applying the data‑processing tax to fees charged by platforms such as eBay, Amazon, DoorDash and Etsy. The comptroller argued that the tax “never belonged to the government” and that eliminating it would return tens of millions of dollars annually to Texas families and small businesses.
Rep. Angie Chen Button (R‑Garland) previously introduced House Bill 1681 to achieve the same outcome, but the bill stalled in committee. Huffines’ approach uses agency rulemaking rather than legislation, allowing the change to move forward without waiting for the next legislative session.
Ending the medical‑record tax
The second directive, issued on Oct. 6, directs staff to start the rulemaking process to eliminate a tax levied when patients or physicians request medical records. Huffines framed the move as a correction of an “unfair” burden on Texans seeking essential health information.
Blocking state funding for surveillance and DEI
In late August, Governor Greg Abbott ordered all state agencies to stop funding Flock surveillance cameras. Huffines followed suit with a Oct. 13 directive that would prohibit the use of state grant money for the technology, citing the need to protect taxpayers and enforce Texas law.
The fourth directive, announced last week, requires contractors and grantees to certify that no portion of their work involves DEI programs. The comptroller’s office says the measure safeguards state funds from being used for initiatives that conflict with Texas statutes.
Political context and election implications
Huffines, appointed by Governor Abbott in August 2025, is running for a full four‑year term in November. He will face Democratic state senator Sarah Eckhardt, who criticized the comptroller for “cosplaying” as governor and for focusing on policy changes rather than traditional fiscal duties.
A recent statewide poll from the University of Texas at Austin’s Texas Politics Project placed Huffines one point ahead of Eckhardt, a margin that falls within the poll’s margin of error. Early voting is underway through Oct. 30, with Election Day scheduled for Nov. 3.
Expert reaction
University of Houston political‑science professor Brandon Rottinghaus described the directives as “internal housekeeping” that amplify the comptroller’s authority but do not supersede legislative or gubernatorial policy. He likened the measures to agency memoranda rather than true executive orders.
Supporters, including small‑business owners and representatives from major online retailers, praised the tax‑relief efforts as steps toward a fairer tax system for Texas businesses.
What’s next?
All four directives are currently in the rulemaking phase, meaning they must undergo public notice, comment periods and final approval before taking effect. If adopted, the measures could reduce costs for online sellers, eliminate a tax on medical‑record requests, and ensure state funds are not used for surveillance or DEI programs, aligning with Huffines’ stated goal of protecting taxpayers and supporting Texas families.
Original reporting: Texas Tribune (HLL/CB) — read the source article.
