Tax Exemption Information – Server Evo

Last Updated: 07-06-2026

At Server Evo , we understand that many of our customers—including businesses, educational institutions, and qualifying organizations—may be eligible for tax-exempt purchases of computer hardware. This page provides an overview of tax exemption requirements and our process for handling tax-exempt transactions.

Important Note: Tax exemption rules vary by jurisdiction and are complex. This information is for general guidance only and does not constitute legal or tax advice. Please consult your tax advisor or your state’s department of revenue for specific guidance.

Who Qualifies for Tax-Exempt Purchases?

Tax exemption eligibility for computer hardware typically depends on:

Business and Commercial Use

In many states, computer hardware purchases may qualify for exemption when used for specific business purposes:

• Data Processing Businesses: Computers used in processing or storage of data for insurance companies, financial institutions, or commercial enterprises may qualify for exemption in some states

• Manufacturing Use: Hardware directly and primarily used in manufacturing, processing, or research and development of new products may be exempt

• Software Development: Computer system hardware used directly and predominantly (more than 50% of the time) in designing and developing computer software for sale may be exempt

High-Technology Companies

Some states offer specific exemptions for high-technology companies. For example, one state provides an exemption for Computer Equipment purchased or leased exclusively for operational use by a High-Technology Company, subject to a $15 million annual threshold and other requirements.

Educational & Nonprofit Organizations

Educational institutions, government entities, and qualifying nonprofit organizations are often eligible for tax-exempt status under state law. Different documentation may be required for each entity type.

Types of Computer Hardware That May Qualify

Qualifying hardware typically includes physical components such as:

• Microcomputers, personal computers, laptops, and tablets

• Servers, mainframe computers, and minicomputers

• External hard drives and portable disk drives

• CD-ROM drives and external modems

• Monitors, keyboards, and mice

• Printers and scanners (when part of a qualifying system)

• Network interfaces, hubs, and routers

• Motherboards, central processing units (CPUs), and controller cards

What Does Not Qualify

Even with an exemption certificate, certain items remain taxable:

• Software: Most pre-written computer software (operating systems, application software) is not exempt unless it is embedded software

• Consumable Supplies: Toner, ink, printer paper, writable media (CD-ROMs, DVDs)

• Tools: Tools used in operation, maintenance, or repair of computer hardware

• Services: Installation, maintenance, or repair services, and warranty/support packages

How to Request Tax-Exempt Status

To have sales tax waived on your purchases, you will typically need to complete the following steps:

1. Complete an Exemption Certificate: Fill out the appropriate form for your state or jurisdiction. Common forms include state-specific certificates (e.g., Form ST-121.3 in New York) or a “Universal Tax Exempt Form”.

2. Provide Proof of Eligibility: Submit documentation that confirms your organization qualifies for exemption under applicable state law.

3. Certificate Review: Our team will verify your documentation. This process typically takes 24-48 hours.

4. Account Approval: Once approved, your account will be flagged for tax-exempt processing. Please note that any orders placed before approval will be charged sales tax.

Important: A certificate should be created for each shipping location. Approval is not immediate—orders placed before your exemption is verified will be subject to tax.

Submitting Your Exemption Certificate

To apply for tax-exempt status with Server Evo , please:

1. Download the appropriate tax exemption form for your jurisdiction (available from your state’s Department of Revenue website)

2. Complete the form in its entirety, including all required signatures

3. Submit your completed form to our team at sales@serverevo.com or via our customer portal.

Required Information

When submitting your certificate, you should include:

• Your business or organization name and address

• Your business type (Wholesaler, Retailer, Nonprofit, etc.)

• A description of your business activities and how the hardware will be used

• State registration numbers for all states where you are registered

Recordkeeping Requirements

When claiming tax exemption, purchasers must always be able to prove they qualify. If you are audited by your state’s tax authority, you will need to demonstrate that the equipment was used for the exempt purpose claimed.

We recommend maintaining detailed records showing how your purchases were used to qualify for the exemption.

State-Specific Considerations

Example: New York

New York provides an exemption for computer system hardware used directly and predominantly (over 50% of the time) to design and develop software for sale, or to provide website design services for sale. A properly completed Form ST-121.3 must be provided to the seller.

Example: Georgia

Georgia provides an exemption for Computer Equipment purchased by High-Technology Companies, subject to meeting specific NAICS code requirements and a $15 million annual purchase threshold. A Certificate of Exemption (Form ST-CE2) is required.

Example: Iowa

Iowa provides exemptions for computers used in processing or storage of data by insurance companies, financial institutions, or commercial enterprises, as well as for hardware used directly and primarily in manufacturing or research and development.

Contact Us

If you have questions about the tax exemption process or need assistance submitting your documentation:

• • • Email: sales@serverevo.com
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