In a private letter ruling, the Texas Comptroller concluded that a medical record retrieval company was providing a taxable data processing service only to the extent it charged for copying of the records it retrieved. The Texas-based medical records retrieval company’s customers are attorneys and insurance companies. The company’s employees manually retrieve and review the records from medical providers as part of lawsuits. The company charged its customers: (i) an authorization fee for preparing the request and reviewing the records; (ii) optional copying fee, making the documents searchable, bates labeling, bookmarking, duplicating, or copying to CD, and (iii) a custodian fee reimbursing the company for charges from the medical provider for providing the records. Prior Comptroller rulings concluded bates labeling and making documents searchable were both taxable data processing services. Therefore, the Comptroller concluded that the company’s only taxable data processing service was the copying fee, while the custodian and authorization fees, were not taxable.