First, the ONLY thing affected by the $25.00 exemption is Internet Access..
dialup or dedicated.. other services have a 20% discount....
The first $25.00, per month, of ANY Internet Access account (be it dialup or
dedicated), is exempt from all Texas sales tax. If the person has Email and
web pages included in that price then no problem.. still the first $25.00 is
exempt... if the customer pays 12 months in advance then still the first
$25.00 PER MONTH is exempt...
So.. a customer who has a $19.95 per month account is totally exempt.. no
sweat... Emerald can handle it...
If a customer has a 128k ISDN line at $34.95 then $9.95 of that account is
taxable.. if he has 2 128k ISDN lines.. then each account is exempt the
Now on to the good stuff... Data Processing, Information Services, Web Host,
and etc ARE NOT Internet Access.. so they have a different tax rule.... and
that rule is that 20% of the TOTAL bill for these services is exempt.... and
the percentage of discount will increase each year until something like 2003
$25.00 is exempt on each Internet Access account.
20% is exempt on all Data Processing, Information Services, Web Hosting and
For anyone that is not on the TISPA mailing list, let me know and I will
send you a copy of what was sent out by the State Comptollers office.....
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