Re: [Emerald] Texas ISP Tax

Eric Reeves ( )
Wed, 8 Sep 1999 12:20:18 -0500 (CDT)

On Wed, 8 Sep 1999, Sheryl D. Weidner wrote:

> Create a service whose cost is -2.06 (.0825 x 25.00). This service
> should not be taxable. Other services should be taxable, and the region
> your customers are in should be default taxable.
> For any customer whose services are always more than $25.00, add this
> service as a recurring service called something like "tax credit" to
> their MBR.

This would help, but only for customers who receive the full $25
exemption. All other accounts would have to be processed by hand. The
following case would not work:

$15 Dial-Up Account
$10 Domain Hosting

Tax should only be charged on the $10 domain hosting, so only .0825 x $15
should be refunded to the account. This would still have to be done by
hand. Technically, according to the new law, we are supposed to exempt
the first 20% of data processing / information services, which means we
only charge tax on 80% of the $10! We are basically going to throw this
little rule out the window for the time being. Until a system can do this
automatically, we are fudging things a bit. .

I will forward an email that came across the TISPA (Texas ISP Assoc) list
about the new law to this list for review. It will explain things a bit
better than I can.

What a headache!

| Eric Reeves |
| GHG Corporation |

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