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Texas and Taxes: Is a Server a Business Presence? 103

Posted by samzenpus
from the do-you-take-virtual-money? dept.
1sockchuck writes "Does having a server in a data center give you an official business presence in the state where the data center is located – invoking the requirement to collect state taxes? Not in Texas anymore, thanks to a new bill, which clarified a ruling that would have required hosting companies leasing servers in Texas to collect state sales tax from their customers. That's a big deal, since Texas is home to many of the industry's largest hosting companies — including Rackspace and SoftLayer, who have comments on the issue."
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Texas and Taxes: Is a Server a Business Presence?

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