2 {{ upvoteCount | shortNum }}
2 {{ upvoteCount | shortNum }}

Question About Texas Sales Tax

by deannatroupe
1 replies
I just read in an email that if I have a host that has servers in Texas I have to collect sales tax on digital goods. Is that true? I am asking because I went to the Texas state tax website looking for information and got more confused. Can someone clarify this or point me to a website with recent information? Thanks. I don't want to make changes without getting all the information right.
#question #sales #tax #texas
  • Profile picture of the author kindsvater
    Yes and no.

    Yes, Texas now has an administrative rule claiming that mere use of a Texas server (eg, Hostgator, ThePlanet, etc.) requires payment of Texas sales tax:

    http://info.sos.state.tx.us/pls/pub/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tl oc=&p_ploc=&pg=1&p_tac=&ti=34&pt=1&ch=3&rl=286

    In particular, see (a)(2)(E).

    However, this only applies to selling tangible, physical items - not digital items.

    See (a)(10).

    In any event, this rule appears to plainly violate the commerce clause of the US Constitution and the federal Internet Tax Freedom Act.

    I use Hostgator servers in Texas and have absolutely no intention of obtaining a Texas sellers permit or paying Texas sales taxes.

    .
    Signature
    {{ DiscussionBoard.errors[2641697].message }}

Trending Topics