Web Hosting Talk : Web Hosting Main Forums : Colocation and Data Centers : Tax question about Hosting in Illinois

[WebGuyz]

Thinking of moving my web hosting operation from Texas to Chicago Illinois in a few years. Was curious what is and is not taxed. In Texas web hosting is taxed if the customer has nexus or does business in texas, but not otherwise. Things like domains and ssl certs are not taxed. Dedicated servers are.

Can anyone currently in Chicago give me a rough estimate of what I could look forward to.

Please don't tell me to contact the State Comptroller of Illinois. Not looking for details.

Just trying to get a rough idea. Its bad enough they have a state tax in Illinois.

Thanks!

[Continuum]

Illinois does not currently have a service tax which hosting, colo, and dedicated would fall under. Although, with my state's current economic woes, it would not surprise me to see something services based in the coming years.

I believe the Texas tax on colo and dedicated are real estate based, correct me if I'm wrong.

-Tom

[WebGuyz]

We don't do colo, but we do have to pay tax on dedicated servers. Very convoluted tax system here in Texas and I got 3 different answers when trying to get details from the state comptroller representatives.

Thanks for the info!

[cyberhouse]

we dont charge tax here and i dont know of any providers around here who do.

[USSHC_Colo]

You shouldn't have to pay tax on that in IL or in IA if you're looking for an alternative that may be a bit cheaper.

[moosh28]

As mentioned, no tax similar to Texas in Illinois. Sales tax is high for purchases (10.25%), so keep that in mind if you buy drives/RAM from your provider within the state.

There is talk of repealing part of the Cook County sales tax within a few years. Best bet is that it will be marginal and get the total state/local tax a shade under 10% at best.

[XFactorServers]

Originally Posted by moosh28

As mentioned, no tax similar to Texas in Illinois. Sales tax is high for purchases (10.25%), so keep that in mind if you buy drives/RAM from your provider within the state.

There is talk of repealing part of the Cook County sales tax within a few years. Best bet is that it will be marginal and get the total state/local tax a shade under 10% at best.

10.25% consider yourself lucky