Hello Folks -- a few months ago AboveNet hit us with a 3.095% NYS Franchise 186-A/E tax which after some research turned out to be legitimate and we could stomach it. On our most recent invoice they've tacked on a 8.375% NYC sales tax so we're looking at a nearly 11.5% tax on our entire invoice per month.
My question is, do any of you pay sales tax for your colo? I'm especially interested in hearing from anyone who has a colo in New York City. Our business location is in NJ so I've always thought we're except from sales tax.
As with all taxes, if the majority are paying them we'll have to stomach it and pay them also but to my knowledge no one I know is paying any sales tax for their colo's. Being out of state I don't think we should be charged any sales tax at all so I'm looking to gather some opinions before contacting AboveNet. I'll also contact my accountant first thing next week.
Im living in Ireland, I have colo in Texas and I am paying 6.6% sales tax. When I first ordered I had no tax untill a few months later it was added. I haven't contacted the provider about it as Im not too bothered. I don't have much colo'd there.
If I was paying 11.5% and had a large bill each month I would definately contact the provider and ask for more detailed info.
Technically, unless they have an office in your state of which New Jersey and New York are two separate states, it is illegal to my knowledge to tax others in other states because you cant post it on your return. That just brings extra cash in for the company.
█ Matthew Rosenblatt, and I do lots of things.
█ Currently a Master Electrician on Broadway.
█ My company, BurstAV, specializes in A/V Systems Design and integration.
█ I also own ConcertCables. We build power/data cables for the entertainment industry.
This is not always true, and is why you should always check with the appropriate city/state authority. The charging of sales tax depends on how the service is classified and where the service is provided, and can vary greatly from state to state.
We have co-location in multiple NYC locations, and have never been charged sales tax. Co-location is a service, not a product, so it sound suspicious that you are being charged a sales tax. I would definitely speak to your provider about it.
Nearly everywhere has what is called an Ad Valorem tax or "at value". If you own a piece of hardware that is an asset within the Taxing juristiction, you should pay a tax based on the colocated "at value" eatimation of the asset.
This one flies under the radar on most people, but colocation providers are required to give your name and address to the tax man.
██ Ray Womack @ atOmicVPS LTD ██ Linux & Windows Cloud Hosting Solutions Powered by OnApp
██ Fully Managed [Shared] ► [Reseller] ► [Cloud VPS] ► [Dedicated]
██ Featuring the atOmicSTACK™ ● Speed ● Performance ● Reliability