Texas Tax Law

[QT]

After reading on different forums and doing some searching, I noticed that some
hosting providers charge taxes on their servers and some do not. ServerBeach doesn't seem to be charging taxes..so I guess my question is why are some charging and some are not? If you don't pay the taxes, does the State of Texas have legal repercussions against you?

[awsolutions]

Hello,

It might be a city or county thing.

[Viruseater]

I think it's more of a corporate stance. Rackshack charges tax, but I wouldn't be caught dead paying for their nasty routing and severely overloaded bandwidth.

NO company has to charge sales tax unless the buyer resides in the same state, however there are different laws in process right now that will change that.

I know I wouldn't go with a provider that ever charged me sales tax, simply for the fact that it sets a precident I don't want set.

[littlebt]

the tax issue changes by state in oklahoma if i sell to someone over the internet or the phone i have to pay state tax but not local tax so i have to charge 3.034% or something like that ( all of my business right now is local so i dont worry about the state only % right now )

[OOagent137]

I'm no expert, but this might be it. I know on mail order items and such (internet included, though this might only apply to out of state), many states have a place on your tax form to account for what you bought from these places. However, TX does not have one. That might be it.

[kbrown]

I don't think you are required to charge taxes for providing a service, such as web hosting. Why some do and some do not, Im not sure. I have never been charged/have charged taxes for such service.

Kevin

[BigKahuna]

It's probably best to work with your accountant on such things... you could also visit your local comptroller office and ask them. I'm no tax expert - and getting advice from a public forum probably isn't the best thing really... way too much mis-information.

I can only imagine that being in trouble for taxes can be no fun. Probably best to get professional advice on it rather than put your business, or worse yet, yourself at risk for getting in trouble.

[Viruseater]

All I can say is just ignore this whole thread and leave things the way they are. I think we've got combined 13 or more servers with you and i don't even want to think about tax

Infact you should delete this thread !

[QT]

Given the fact that this thread is pretty much old and dead...

I'm sure everyone who was/is interested has done their own research now regarding this topic and it's pretty much an irrelevant thread now. :p