If you are located outside of the state of Texas, you do not have to pay sales tax on The Rackspace Cloud purchases. However, if you are located in Texas, you will be charged Texas state taxes (5.9%), and customers in San Antonio also pay city taxes as well (for a total of 6.5%). Those taxes are collected for anything you buy from The Rackspace Cloud: your account, your domain name purchases, your MS SQL purchases, etc.
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