help on TAX report for Cyber Cafe!!

Nov 15, 2006 1 Replies

hello, my name is kevin, and i own a cyber cafe in phoenix, arizona. i have couple questions about the "how to report tax in phoenix, arizona" well, privilege (retail) tax license for my store (i'm not even sure it is right tax license for cyber cafe), i'm paying tax every month for AZ state TAX and City of Phoenix. i'll show some example that how much i usually pay for the states and city taxes.



-City of Phoenix let say my "net taxable" is $10000, I paid $140 for city of phoenix tax (tax rate 1.80%)



-Arizona State Tax let say my "net taxable" is $10000, i paid $499.52* (tax rate 0.063% - Accounting Credit $4.48) so i pay almost $550 every month, but i think i pay too much for cyber cafe. what i am think is there should be other tax code/rate for cyber cafe, because of my current license is privilege retail license, but i don't sell computer, cyber cafe is computer service. Customer pays for internet service. please help me out if you have any suggestion about the cyber cafe tax info, please share with me!! thank You!




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wrote

What the state will claim, and what you are doing in reality, is not providing a service of internet access, but you are renting the computers by the minute. In most states, rental of equipment would be subject to taxes. If your prices aren't high enough (tax inclusive) increase them.

-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net

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