On July 1, 2014, the Wyoming Department of Revenue issued a bulletin to address questions concerning the sales tax treatment of current technologies. The technologies include software, cloud computing and peripheral services.
Wyoming levies a sales tax on tangible personal property. Tangible personal property includes computer software. Specifically, Wyoming taxes pre-written software regardless of delivery method. Custom software, created for a specific client, is exempt from sales tax.
In the bulletin, Wyoming reveals for the first time how it will treat cloud computing products, including SaaS, PaaS, and IaaS. Cloud computing services will be generally treated as nontaxable purchases for purposes of Wyoming’s sales tax. This assumes that the purchase of the cloud product is not accompanied by a transfer of tangible personal property or an enumerated service.
Access to the host site itself may or may not be taxable. If a customer is required to purchase an application to access the cloud service, the application is taxable.
The bulletin also states that data storage fees are generally not subject to Wyoming’s sales tax. However, if host provider manipulates the data or has access to customers’ computers then the fees would be taxable.