Archives: Software

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Idaho Has An App For That

Last year Idaho’s House of Representatives enacted HB 243, exempting cloud computing services from Idaho’s sales tax. However, the legislation led to more questions and uncertainty. Thus, Idaho’s House of Representatives introduced HB 598 to provide clarity to HB 243. However, based on the governmental entities’ comments and legislation many issues remain unsettled. Under Idaho’s … 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

You’re Invited! Clouds, Codes, and Crunching Numbers: An Update on Current Multi-State Tax Developments

You’re Invited! On Wednesday, March 14, we will present our semi-annual update on the state tax developments involving E-commerce and the treatment of digital goods and services including: software, cloud computing, web-based services, web-hosting, and electronic data processing. The taxation of emerging technologies is an area of tax law that is developing as quickly as … 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

California Software Refunds – SBE Issues Guidance to Auditors on Nortel Claims

Earlier this year, the California Court of Appeal (2nd District) issued its decision in Nortel Networks, Inc. v. State Board of Equalization, holding that sales of prewritten software fall within California’s sales and use tax exemption for transfers of intangible property pursuant to a technology transfer agreement (TTA).  The Court held that as long as … 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

Pennsylvania Opens A New Can… of Refunds for Past Software Purchases

Last year, the Pennsylvania Supreme Court held that purchases of licenses to use canned computer software, however delivered, are subject to sales tax. While this decision may have shut the lid on tax-free software in Pennsylvania, the Court’s reasoning actually creates a unique sales tax refund for some software purchases—especially electronically delivered canned software programs. … Continue Reading