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texas sales tax issues


georgew

Question

Greetings,

 

Texas has a complex tax arrangement for Internet taxes.

 

Internet access is taxed on amounts over $25 of any monthly charge for Internet access.

 

So for example if we sell a T1 for $349, the sales tax is calculated on $324.

 

But wait, it gets better!

 

Web hosting is taxed at a rate of 80% the normal tax.

 

Email and other services are taxed normally.

 

Does WHM support "Texas sales tax"?

 

Or do we have to manually create sales tax charges in the plan?

 

If we do it in the plan, how do we create a report showing what taxes were charged and what we owe?

 

 

George

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We just make it 100% for ease of bookkeeping. We tried using 6 something percent but it got to be a nightmare. When you report it to the state comptroller they use 8.25% for everything so we do as well.

 

In Texas you don't charge tax on domains or SSL certs but have to charge 8.25% on setup fees, but you don't charge tax on consulting. You don't charge tax on hosting if customer is out of state and does not have a office (or nexus) in Texas.

 

Crazy Tax laws in Texas...

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