A company’s sales of canned software that is downloaded by customers over the internet are not subject to Missouri sales and use tax. The company’s database file software will only be able to be purchased and downloaded on the company…
Web-Based Computer Programs Not Taxable in Indiana
An Indiana retailer was deemed not liable for sales and use tax on the sale of the right to use web-based computer programs because the retailer provided service contracts, brochures and other information about the services to the court showing…
Data Downloaded Electronically as PDF Not Taxable in Missouri
A company\’s sales of data that is electronically downloaded onto customers\’ computers in PDF format is not subject to Missouri sales tax because…
New Mexico Discusses Taxability of Internet Stock Trades
The New Mexico Taxation and Revenue Department issued a letter ruling on the sales and use tax treatment of a securities broker’s services. Fees for internet and touchtone phone trades placed by customers assigned to a New Mexico location but…
Iowa Issues Policy Letter on Cloud Computing
The Iowa Department of Revenue has issued a policy letter addressing the taxability of hosted software and related training services.
Kansas Discusses Taxability of Cloud Computing
The Kansas Department of Revenue issued an opinion letter discussing the sales tax treatment of charges for hosted software services billed to Kansas subscribers.
Taxability of Online Training and Customer Lists in Indiana Discussed
A car manufacturer that sells access to an online employee training system to a car dealership is not subject to sales tax on sales of the training system. The sale qualifies as a nontaxable training service and not as a…
Electronic Transfers of Data Not Taxable in Illinois
The sales of call tracking services by an Illinois company to its customers are not subject to Illinois sales and use tax.
Service Plans Sold with Computer Servers Taxable in Florida
Service plans which were separately stated but sold in conjunction with computer servers are subject to sales and use tax in Florida. Computer servers qualify as tangible personal property. Since they are being sold as part of a tangible personal…
Taxability of Software Maintenance Contracts in South Carolina Explained
The South Carolina Department of Revenue has issued a revenue ruling to remind taxpayers that effective September 1, 2011, a warranty or maintenance contract purchased after the tangible personal property is purchased is no longer taxable, with limited exceptions. If…
Use of Online Software in Tennessee Not Taxable
The Tennessee Department of Revenue has issued a letter ruling stating that the monthly fee charged by an out-of-state software vendor to Tennessee taxpayers for online access to customer relationship management (CRM) software is not subject to Tennessee sales and…
North Carolina Clarifies Sourcing of Digital Property and Software
The North Carolina Department of Revenue has issued a notice clarifying the sourcing provision applicable to sales of certain digital property and computer software delivered electronically. When the delivery address is unknown and the seller is unable to determine the…
Taxation of Software as Tangible Personal Property in Kentucky Deemed Correct
A Kentucky company that acquired licenses to use prewritten computer software along with the hardware needed to run the software sought a refund of the sales and use tax paid on the software, arguing that it was not tangible personal…
Software Licensed to Operate Switching Equipment Exempt from California Sales Tax
Software licensed by a California taxpayer to a telephone company to operate switching equipment was deemed exempt from sales and use tax under statutes regarding technology transfer agreements (TTAs). The software was copyrighted, contained patented processes, and allowed the telephone…
Colorado Issues Permanent Regulation on Sales and Use Taxation of Software
The Colorado Department of Revenue has issued a permanent regulation on the sales and use taxation of software, with guidance on the de minimus rule and maintenance agreements.
Wyoming Adds Additional Sales and Use Tax Exemptions for Data Processing Service Centers
Wyoming has enacted legislation providing for additional sales and use tax exemptions for data processing service centers. The exemption for computer equipment necessary to operate data processing service centers now also includes prewritten and other computer software and containers used…
Washington Provides Guidance on Taxation of Digital Products.
The Washington Department of Revenue has provided guidance on legislation addressing the sales and use tax and business and occupation (B&O) taxation of digital products. H.B. 2620 provides exemptions for digital products. If a business purchases digital goods solely for…
Sales of Prewritten Software in New York are Taxable based on Location of Use.
The New York Department of Taxation and Finance has determined that sales of prewritten computer software are subject to New York sales and use tax even thought the delivery was to the customer in Tennessee. Prewritten software qualifies as tangible…
Exemption for Computer Data Centers Enacted in Washington
Washington passed legislation which allows a sales and use tax exemption for the sales of eligible server equipment to be installed in qualifying computer data centers. To be eligible, a computer data center must be located in a rural county,…
Nebraska Amends Advantage Act to include Data Centers and Sales of Electronically-Delivered Systems
The Nebraska Advantage Act has been amended to include the research, development, and maintenance of a data center as an investment eligible for the sales and use, income, and personal property tax incentives available under the Act. For purposes of…
Colorado Issues Emergency Regulation Explaining Taxation of Multiple Points of Use Software
In response to Colorado’s recent elimination of the exemption for electronically-delivered software, an emergency regulation has been issued that explains, among other things, the taxation of standardized software that is concurrently available for use in multiple jurisdictions. If the purchaser…
Electronically Delivered Products and Remotely Accessed Software, Materials, and Media Taxable in Louisiana
In a recent revenue ruling, Louisiana stated that all products delivered electronically to equipment located within the State, including…
Receptionist Software Accessed From Web Site Is Taxable in Indiana
A taxpayer’s purchase of licenses of software that handled various office management duties commonly performed by a receptionist and accessed through the software vendor’s website was found under audit to be taxable as prewritten software because the software was not…
Nebraska Web Site Design and Hosting are Exempt
Retail sales of Web site design, development, and hosting by a Web site service provider are not subject to tax in Nebraska unless the Web site design is transferred to the customer on a tangible storage medium. If the Web…