What US states are charged tax for SaaS services by Heroku?

Issue

You'd like to learn more about the taxation of Heroku services and what states are subject to taxation for services rendered.

Resolution

In order to become tax compliant, Heroku is charging taxes to customers in U.S. states starting August 1, 2019. Billing addresses in the following states will result in sales taxation on your Heroku invoice:

Arizona
Connecticut
District of Columbia
Hawaii
Iowa
Illinois
Maryland
Massachusetts
New Mexico
New York
Ohio
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Washington
West Virginia

Additional states will be added as Heroku continues to become tax compliant.

Taxable locale

Taxes are based on the billing address entered during credit card verification. Taxes will appear on both Personal and Heroku Teams whose address is listed in one of these states.

Heroku is happy to comply with sales tax exemption requests from eligible organizations. To be given sales tax exemption, a Heroku Team admin, account owner or Personal account holder must submit your organization's state tax exemption form as an attachment to a Heroku support ticket.

Processing time

We cannot accept Federal (IRS) tax exemption forms; only the state form will be used for sales tax exemption. Once the request has been received, please allow 10-12 business days for processing.

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