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Texas’ Great Tech Exodus

Submitted by tom on

Man holding gold suitcase
In an economy where tech is one of the few bright spots, unfathomably, Texas is pursuing policies to drive hundreds of thousands of high tech professionals out of state. Anyone who does anything web related is being targeted. Unsuspecting web designers, applications developers, marketers and consultants are being slapped with huge tax fraud assessments. Even those who are able to survive these draconian death penalties will find themselves struggling to compete on an increasingly uneven playing field. Stripped of the tax protection afforded to all other educated professionals, those with expertise in software engineering or marketing will face a destructive ripple effect.

Understanding Texas sales tax for web related professional services

Submitted by tom on

headache

Texas is one of the 47 states that does not charge sales tax on professional services. Therefor many consultants providing web related services such as marketing, design, programming and digital strategy believe their services are not subject to sales tax. However, Texas has some fairly unique data processing and information services statutes that the state Comptroller is interpreting in the broadest possible manor to effectively make any professional service related to the web subject to sales tax.

Defining the problem

Submitted by tom on

The only difference between this place and the titanic was they had a band

The State of Texas is enacting policies that create an unleveled playing field for web development, online marketing and software engineering service providers. Additionally, this new reality raises the costs for any organization in Texas, and in particularly small business, to access the technologies they need for marketing and to build better business processes.

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