In response to a taxpayer request, the North Carolina Department of Revenue completed a private letter ruling regarding sales tax payments on subscription fees for software as a service (SaaS). The taxpayer licenses a cloud-based SaaS platform for customer engagement and marketing. North Carolina determined that there was no sales tax on these fees because the “[Taxpayer’s] customers do not receive a tangible copy of or an electronic download of the software as part of the subscription fee. Customers do not have the right to download, copy, or modify the software.” The taxpayer is strictly providing access to the cloud-based software through the internet with use of a username and password. North Carolina does not currently tax access to cloud-based software accessed electronically over the Internet. (SUPLR-2021-0007, North Carolina Department of Revenue, February 2, 2021)