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Discussion Starter #1
I just read a story that Texas this week will begin looking at websites hosted in their state and see if they are required to pay sales taxes for sales made to residents in that state. There are a couple of very large hosting firms there that may have a serious tax problem for their customers that don't even reside in Texas but will be required to register and pay Texas taxes now. You may want to check with your Host Provider and CPA to see if this applies to you!
 

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Would that only apply if a website performs online sales? Otherwise I would make the argument that a website is for advertising. Do you have a link to support this?
 

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Maker of Fine Sawdust
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I host with Hostgator, they are based here in houston, and now I have to pay website tax becasue they are a local merchant
What are you paying tax on? The website itself? as in the cost to have the website be in existence. Or are you paying taxes on something else?

If you are selling items from your website, something that you send to the customer, and if this customer is within the state of Texas then you indeed have charge the sales tax on those items.
 

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What are you paying tax on? The website itself? as in the cost to have the website be in existence. Or are you paying taxes on something else?

If you are selling items from your website, something that you send to the customer, and if this customer is within the state of Texas then you indeed have charge the sales tax on those items.

Im paying tax on the hosting plan itself, the messed up thing is that 1 year with hosting went by and I never paid a single tax, then all the texas residents get an email from hostgator saying that, they owe back taxes, for not charging the texas residents tax on the hosting, so they fronted the bill, but expect my self, and every other person to pay the taxes that they owe over the period they had the account.

its a bunch of crap if you ask me, that is their mistake, and yet we have to foot the bill, I dont mine paying the tax now, but if they expect me to pay for the taxes that they never charged me to begin with, they are off their rocker
 

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Maker of Fine Sawdust
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You are dealing with a government entity and taxes. The retroactive taxes always suck and seem unfair at best. But, I doubt that you will be able to fight it. I also don't think that they can go back more than one year. But this is the government. I would suggest just paying them and being done with it. You will be able to deduct it from your business as a business expense. My plan is about $120/yr so the taxes would be minimal.
 

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TKO-TotalKitchenObsessed
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I never heard of such a thing and I'm in Texas. All I can say is those of you who vote and love your govt........just shut up and dig deeper. Most people want govt to control them. Some want less govt, most want more govt. I want NO govt. America prospered before the Federal Income Tax was initiated. Now look at us. We fed the govt machine fire till it is so out of control that we can no longer turn it around.

Pizz on them all................
 

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Capra Aegagrus
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You are dealing with a government entity and taxes.
Not in this case. As I understand it, the hosting service neglected to bill for taxes last year, got dinged when they didn't pay the state, and are now billing their customers retroactively in order to make up for their own oversight.

The customers have the option to pay it, or take their business elsewhere.
 

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Not in this case. As I understand it, the hosting service neglected to bill for taxes last year, got dinged when they didn't pay the state, and are now billing their customers retroactively in order to make up for their own oversight.

The customers have the option to pay it, or take their business elsewhere.

Ding ding! I will probably move my hosting else ware, Ive just been very happy with hostgator thus far,
 

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How about a link to the article?
I thought that this would be the case. Unfortunately the policy of this forum does not permit me to provide that since I haven't posted enough responses. So should you want to read more about this then I suggest that you go on Google and look up Diane Kennedy's USATaxAid blog posts for this week. The title is "All My Nexus Lives in Texas". I hope that this helps and further explains.

The Contractor Coach
 

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Maker of Fine Sawdust
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Not in this case. As I understand it, the hosting service neglected to bill for taxes last year, got dinged when they didn't pay the state, and are now billing their customers retroactively in order to make up for their own oversight.

The customers have the option to pay it, or take their business elsewhere.
Sounds like you just have to call them up and say, do you want my business? Then deal with your screw up and keep me. Otherwise I will go to another host. You will probably get off the hook.
 
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