Archives: Clouds

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Tennessee Skies Still Look Clear for Cloud Computing

Yesterday, the Tennessee Department of Revenue issued Letter Ruling #13-21.  In the Letter Ruling, the Department considered the taxability of three distinct transactions.  The first two scenarios involve demonstrations of software.  The Ruling concludes that when a taxpayer creates a “virtual lab” for testing and demonstration purposes, whereby it loads full-version software or a trial … Continue Reading

Utah is Taxing the Cloud (or, This Cloud-Based App)

In a recently issued ruling, Utah issued a Private Letter Ruling concerning the taxability of cloud-based applications. A Utah corporation requested the Utah State Tax Commission to determine whether their cloud-based applications are subject to Utah’s sales tax.  The cloud-based applications support their customers’ telecommunication equipment by instructing the equipment on how to process incoming … Continue Reading

Massachusetts Reverses Course on Taxing Cloud Services

On November 8th, the Massachusetts Department of Revenue revised and reissued Letter Ruling No. 12-8, originally released July 16, 2012. The original ruling addressed the taxability of a cloud computing product comprised of remote storage and computing capacity where users elect to use software licensed from a third-party rather than their own software or open-source … Continue Reading

What We’re Reading…

What We’re Reading… David Linthicum (who authors a widely-read blog on cloud computing) is frustrated with the overuse of the term “cloud computing.” His latest take? Cloud computing is not a thing that we do but rather, the relationships that technologies have to each other.… Continue Reading

An Apple(t) Downloaded Today Won’t Keep the Taxman Away: Utah Takes a Bite Out of Web-Based Services

The Utah Tax Commission recently issued Private Letter Ruling No. 10-011 (2/24/12) in which it determined that the provision of certain web-based services are subject to sales tax under two newly amended sections of the Utah Code.  The ruling is a significant shift from prior rulings in Utah that held that access to software on … Continue Reading

Taxing the Clouds – SaaS in Kansas: They’ve Gone About as Far as They Can Go…

It seems that “everything’s up to date in Kansas City”*—and the rest of Kansas for that matter—when it comes to the tax treatment of SaaS, or software as a service. On Monday, in an opinion letter issued by the Office of Policy and Research, the Department of Revenue determined that charges for a “hosted software … Continue Reading

Play On! MO Says NO to Tax on (Some) Codes & Credits

In a recent letter ruling, the Missouri Department of Revenue was asked to consider if certain video and virtual-reality game products were subject to that state’s sales and use tax. Specifically, the products at issue in the ruling request were: digital access codes printed on a receipt, which when entered on a website allow a … Continue Reading

Pennsylvania… Amazon Stops Here!

While it’s certainly not the first state to consider affiliate nexus legislation (since 2009, several states including: Colorado, Illinois, Rhode Island, North Carolina, Arkansas, New York, Connecticut, and California, have passed affiliate nexus—or “click-through”—laws), a bill was recently introduced in the Pennsylvania legislature that, if passed, would greatly expand the definition of nexus for sales … Continue Reading