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help on TAX report for Cyber Cafe!!

 

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Subject Author Date
help on TAX report for Cyber Cafe!! woaud2ebay 11-14-2006
Posted by woaud2ebay on November 14, 2006, 8:28 pm
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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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<< The foregoing was not intended or written to be used, >>
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<< that may be imposed upon the taxpayer. >>
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Posted by Paul Thomas, CPA on November 15, 2006, 10:05 pm
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<<snip>>

> 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!

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
paulthomascpapc@bellsouth.net

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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