Without Ink Reuters America, Inc. v. Sharp, No. Reuters America, Inc., provides electronic news services to paying subscribers. It divides its services into different subjects, including energy, commodities, mortgages and equity markets. Each service includes general news about politics, sports and weather and human interest stories. Reuters employs reporters who gather and write its stories.
Subscribers receive the information through their computers, via satellite or telephone lines.
Reuters contracts on an annual basis and bills monthly or quarterly. Information services, including electronic data retrieval services, became subject to sales and use taxes effective October 1, 1987. The Comptroller audited Reuters and assessed uncollected taxes on its information services. Reuters filed suit, arguing that the tax on information services violates constitutionally protected rights to free speech and equal protection. The Travis County District Court granted the Comptroller's motion for summary judgment.