Texas Bill Averts Tax Crisis for Hosting Companies

by Ainsley Jones

The governor's signature on Texas House Bill 1841 has come to the delight of several Texas-based hosting and data center companies.

Texas Governor Rick Perry signed Texas House Bill 1841 last month. The bill reverses a rule that said renting a space on a server in Texas effectively establishes a business presence in the state and now removes the responsibility of having to collect Texas sales and use taxes from customers, according to Data Center Knowledge.

With major data center and hosting companies like SoftLayer, Rackpspace and Layered Technologies calling Texas home, the bill is a big deal. Suzy Fulton sums up the delight of the Texas-based companies on the SoftLayer blog.

This article was originally published on Wednesday Jul 13th 2011