Texas Comptroller Commits to Addressing Tax Concerns Raised by Small Businesses

AUSTIN (Sept. 4, 2026) — After a roundtable discussion with small business owners, Comptroller Don Huffines today committed to working with them to address concerns about Texas Rule 3.330, which taxes the fees sellers pay online marketplaces like Amazon, eBay, and Etsy.

“I’m grateful these business owners took the time to meet with me on this important topic because fair tax policy starts with an accurate picture of what is happening in the marketplace, not with assumptions made by bureaucrats in Austin,” said Comptroller Huffines. “I’ve said from day one that taxpayers deserve fair, consistent, and clearly defined rules. The feedback from the roundtable will be evaluated carefully as we work to ensure every Texas business is treated fairly.” 

Comptroller Huffines met with the following small business owners who raised concerns regarding the tax’s impacts on their businesses:

• Matt Harris, owner of Amarillo-based Coolhorse, a Western riding gear store.
• Julia Kahlig-Garuba, founder and CEO of Austin-based Herb and Root, an artisanal fragrance and body care brand.
• Mohamad Sam, owner of Houston-based Purifyou, a sustainable products business.
• Robert Strong, owner of Austin-based Pretty Thai, a specialty sauces and spices brand.
• Jessica Taylor, founder and CEO of Houston-based Ezra Coffee.

When a business sells a product through an online marketplace like Amazon or Etsy, it pays the marketplace fees for the digital services that help facilitate the sale. Rule 3.330 requires businesses to pay a tax on those fees, increasing their costs and further eroding already-thin margins.

“I sell on multiple online marketplaces and have been beating the drum on how harmful this would be for small businesses,” said Mohamad Sam, owner of Purifyou, a sustainable-products business based in Houston. “Margins are tight, and every little bit matters. Texas businesses spoke up, and we thank Comptroller Huffines for listening to us today and working toward a solution.”

“It was an honor to share my perspective and experiences with Comptroller Huffines, and I appreciate his willingness to listen,” said Matt Harris, owner of Amarillo-based Coolhorse. “Rule 3.330 continues to impose unnecessary costs on Texas entrepreneurs. We look forward to working with him to find a solution.”

Texas businesses have been speaking out about the tax for over a year, noting that it hurts their margins, makes it harder to compete with out-of-state businesses not subject to the tax, and will likely lead to higher prices for consumers.