In response to a taxpayer’s question, the Texas Comptroller ruled that a hotel’s charges for internet access services were taxable if they exceeded $25 per month. The first $25 charged in a month is exempt from tax, while any excess is taxable at a normal rate. If the hotel cannot track charges per guest, they can purchase the internet service tax-free from the service provider with a resale certificate and then charge tax on the subsequent charges to the hotel patrons while paying use tax on their share of the service. The hotel can also choose to pay the tax on the service at the time of purchase and take a credit for tax paid on services resold to guests. (Letter No. 200611792L, Texas Comptroller of Public Accounts, November 9, 2006)