Tax Information
IMPORTANT UPDATE - October 19, 2009
The Washington State Department of Revenue has determined that the Legislature did not intend with Engrossed Substitute House Bill (ESHB) 2075 to change the taxation of Web site development or hosting services, Digital data storage, Online advertising services, and more. See the Washington Department of Revenue updates on their "Doing Business" webpage. This makes the previously established Digital Products Tax on our customer's Web Hosting services no longer required. We are making revisions to our billing systems and all instances of this tax on a customer's bill are being credited. Thank you and if we can answer any further questions or help in any way please contact ISOMEDIA customer support.
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Washington State Digital Products Tax Information - September 29, 2009
The Washington State legislature recently passed legislation that imposes a state sales tax on digital products sold to residents and business located in the state of Washington. The legislation, Digital Products Bill (ESHB 2075), enacted a retail sales tax on the purchase of digital products. This new sales/use tax is effective as of July 26th, 2009. The full text of the bill, and other useful information can be found here.
ISOMEDIA's web-hosting and shared-hosting products match the criteria described in the bill as a " Digital Product", therefore ISOMEDIA is now responsible to collect Digital Product retail sales tax on the sale of these products. You will see this new sales tax on your statements going forward. You may see a higher than expected tax on your next statement as ISOMEDIA will be adding any Digital Product sales taxes that should have been charged since July 26th to meet Washington State requirements. ISOMEDIA recommends that customers review this legislation carefully as some companies may be exempt from paying this tax. ISOMEDIA asks that if you determine that you, or your company, are exempt from this tax to submit an exemption certificate to ISOMEDIA as soon as possible (see links below).
If you believe you have already submitted exemption paperwork and the tax is present on your statement please contact the ISOMEDIA accounting team right away to resolve the matter.
Washington residents and businesses are responsible to pay this tax regardless if they utilize web hosting from providers based outside the state of Washington. Moving your service to an out of state provider will not remove the requirement on you to pay this tax. It is unfortunate that residents and businesses are being required to pay new State taxes on some of our services in this difficult economy and we regret any inconvenience this has on our customers. As always, if we can help in any way please contact ISOMEDIA customer support.
IMPORTANT LINKS:
Digital Products Bill (ESHB 2075)
WHO TO CONTACT REGARDING THIS TAX:
Washington Governor's Contact Information
