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Are Cloud Hosting Services Taxable in Texas

February 5, 2025

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Q. Our company is mainly located in Texas and the company that is managing our cloud hosting is located in Ohio. Would the hosting services be subject to tax since we are located in Texas? A. (Answered by IOFM's Sales and Use Tax expert) If the users are located in TX with the benefit received in TX, then the charge will be taxable. However, cloud services are taxed at 80% of the price rather than 100%. 112980

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