Re: ONLINE-ADS>> Sales tax bite

Kenneth C. Jenks (mindseye_at_tale.com)
Fri, 07 Nov 1997 20:13:05 -0600

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Glenn Fleishman <glenn_at_popco.com> wrote:
>This may affect Internet commerce to some extent, [...]

We sell short stories using both pay-per-view and advertiser-supported
content business models. The State of Texas says that we must charge state
and local sales taxes on all transactions for which we do not know for sure
that the point of sales is outside the State. In effect, that has meant
that we charge sales tax on all transactions. So some of us are already
feeling the byte bite.

Texas has a loophole, however. When we switch our Web hosting company to an
out-of-state provider, we will no longer be required to charge Texas taxes.

Now another question for this list: Must we charge sales taxes on
advertising space purchases?

-- Ken Jenks, Editor-in-chief, Mind's Eye Fiction
http://tale.com/ Short stories on-line
MindsEye_at_tale.com

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