Common use of SALES & USE TAX Clause in Contracts

SALES & USE TAX. If Licensee is physically located in Minnesota, LaborKey will most likely be required to apply sales tax against all regular monthly software license fees and service fees at a rate associated with the 9-digit ZIP code of the Licensee’s billing address – determined using the Minnesota Department of Revenue ZIP code “Sales Tax Rate Calculator”. If Licensee is not located in Minnesota, Licensee may be required to report and remit use tax to appropriate state and/or local tax authorities.