Idaho has passed a bill clarifying that remotely accessed (“cloud”)computer software is not considered tangible personal property and is therefore exempt from Idaho sales tax. For purposes of the exemption, “remotely accessed computer software” means computer software that a user accesses over the Internet, over private or public networks, or through wireless media, where the user has only the right to use or access the software by means of a license, lease, subscription, service, or other agreement. A Statement of Purpose/Fiscal Note released by the state notes that “cloud” computer software is excluded from state sales tax unless a tangible form of the software is delivered to the user. A previous law (H.B. 243) attempted to clarify the tax treatment of “cloud” computer software, but further amendments were necessary to clarify that such software is not subject to Idaho sales or use tax. Computer software that is delivered electronically and computer software that is delivered by the “load and leave” method where the vendor or its agent loads the software at the user’s location but does not transfer any tangible personal property containing the software to the user are also exempt from taxation. Computer software that constitutes digital music, digital books, digital videos, and digital games are taxable tangible personal property, regardless of the method by which the title, possession, or right to use such software is transferred to the user. (Ch. 340 (H.B. 598), Laws 2014, effective July 1, 2014; Statement of Purpose/Fiscal Note for H.B. 598, submitted by Rep. Mike Moyle)