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Wanted: Tax Insight on Cloud Decisions
Rackspace, a cloud-hosting firm, is more familiar with tax liabilities than most of its peers. The San Antonio–based company has gone before the Texas House of Representative’s Ways and Means committee twice in the past two years, imploring it to stop charging its customers sales taxes whenever they use a Texas-based Rackspace server. The company also wanted the state to stop charging Rackspace a margin tax — essentially a fee for the privilege of doing business in the state — on business the company conducts with out-of-state customers.
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