Sam,

I know when we were a wisp here in TX, we collected taxes on everything
over $25 and all of our TX customers do it this way. So yes, tax on the
service plan is charged at the state+local rates (if any) on just the
amount over $25. All other services/products are taxed on the full amount
of the service or product.

Cameron



On Wed, Jun 4, 2014 at 6:52 AM, Sam <[email protected]> wrote:

> Thank you to everyone for your thoughts about my question. If any of you
> are in Texas or New Mexico, are you currently collecting taxes from your
> customers? I'm reading online that the first $25 of service fees are
> exempt from taxes, meaning (if I'm understanding this correctly) that it
> you charge say $40 a month, you'd have to collect sales tax on $15 of
> that charge. Or is that not the way it works?
>
> Thanks again everyone! (Hope everyone in the Midwest made it through
> that storm last night.... we had 114 MPH straight-line winds in and all
> around Omaha NE.
>
> Sam
>
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