---
title: "Does Logikcull charge sales tax?"
slug: "does-logikcull-charge-sales-tax"
updated: 2025-04-07T09:18:27Z
published: 2025-07-10T15:01:26Z
canonical: "docs.revealdata.com/does-logikcull-charge-sales-tax"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.revealdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Does Logikcull charge sales tax?

Logikcull may charge sales tax to your invoices based on economic thresholds determined on a state-by-state basis.

In June 2018, The Economic Nexus ruling in [*South Dakota v. Wayfair*](https://www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf) mandated state sales tax for cloud based software companies based on economic thresholds determined by each state. As such, Logikcull will periodically update the mandatory state taxes on invoices according to the requirements to collect sales tax in the states listed below, based on our economic and/or physical nexus with those taxing jurisdictions.

## Taxing Jurisdictions

Please note that the starting date (to collect sales tax) may be different for each state.

- [Arizona](https://azdor.gov/sites/default/files/RULINGS_TPT_2004_04-010-d.pdf)
- [District of Columbia](https://code.dccouncil.gov/us/dc/council/code/sections/47-2001)
- [Iowa](https://revenue.iowa.gov/taxes/tax-guidance/sales-use-excise-tax/taxation-specified-digital-products-software-and-related-services)
- [Louisiana](https://www.revenue.louisiana.gov/SalesTax/GeneralSalesAndUseTax)
- [Maryland](https://marylandtaxes.gov/forms/Business_Tax_Tips/bustip29.pdf)
- [Massachusetts](https://www.mass.gov/regulations/830-CMR-64h13-computer-industry-services-and-products)
- [New York](https://www.tax.ny.gov/pdf/tg_bulletins/sales/b14_128s.pdf)
- [Ohio](https://www.tax.ohio.gov/sales_and_use/rate_changes.aspx)
- [Pennsylvania](https://www.revenue.pa.gov/TaxLawPoliciesBulletinsNotices/LetterRulings/SUT/Documents/sut-12-001.pdf)
- [South Carolina](https://www.scstatehouse.gov/coderegs/Chapter%20117.pdf)
- [Tennessee](https://law.justia.com/codes/tennessee/2010/title-67/chapter-6/part-2/67-6-231/)
- [Texas*](https://statutes.capitol.texas.gov/Docs/TX/htm/TX.151.htm?sessionId=1543620096608&referrer=https%3A%2F%2Fwww.google.com%2F&lastReferrer=www.avalara.com)
- [Washington](https://app.leg.wa.gov/rcw/default.aspx?cite=82.04.050)
- [West Virginia](https://code.wvlegislature.gov/?chap=11&art=15)

For additional information, please visit the TaxJar website: [https://www.taxjar.com/sales-tax/saas-sales-tax](https://www.taxjar.com/sales-tax/saas-sales-tax)

## How is sales tax calculated?

Sales tax are calculated using the “Business address” listed on the Billing tab in-app.

***Texas** - Under [Sec. 151.351](https://statutes.capitol.texas.gov/Docs/TX/htm/TX.151.htm?sessionId=1543620096608&referrer=https%3A%2F%2Fwww.google.com%2F&lastReferrer=www.avalara.com), Logikcull services are classified as “information services and data processing services” whereby 20 percent of the value of information services and data processing services is exempt from the sales tax.

For example, a customer in Texas has received a Logikcull invoice for services in the amount of $100. If the applicable stater sales tax rate is 8.25%, the the invoice total will read **$106.60**, not $108.25.

*Formula:*

Subtotal Billed + (Subtotal Billed X (tax rate X 80%)) =>

**$106.60 =** $100 + ($100 X (8.25%X80%))

### Resources for Texas customers

- [Texas Comptroller: Data Processing Services are Taxable](https://comptroller.texas.gov/taxes/publications/94-127.php)
- [Texas State Tax Code for Limited Sales, Excise, and Use Tax](https://statutes.capitol.texas.gov/Docs/TX/htm/TX.151.htm?)