What taxes do I have to charge on my website?

Am I required to charge Texas sales and use taxes for my website that?

• offers members streaming videos to view. The member simply has full access to view all of the videos in the members section without the ability to download anything. I have read the Texas Sales Taxes section at http://www.window.state.tx.us/taxinfo/sales/index.html and it says that: " You must obtain a Texas sales and use tax permit if you are engaged in business in Texas and you: sell tangible personal property in Texas; lease tangible personal property in Texas; or sell taxable services in Texas." I am assuming that my site's offerings are not considered tangible goods, but I'm not sure what the "taxable services" are. Please only answer if you are familiar with this issue!

• Answer:

  You are in the same boat as Blockbusters renting videos. You pay tax on the service even though you buy nothing. Calling it a membership makes no difference. It is basically a subscription which is a sales product. Your big problem should be royalies and the FBI, however. You are rebroadcasting these programs even if you are not redistributing them. When you apply for your sales tax certificate you may be told this. They will not give you a certificate if they deem it to be an illegal venture.