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 computer software and applications, stored media, and entertainment media and products are considered tangible personal property, and are therefore subject to sales, use, or lease tax. Similarly, remotely accessed software, information materials, and entertainment products or media are taxable transactions when the access requires payment or consideration in any form. This applies whether accessed one-time or as part of a subscription, and regardless of if the item can be only be viewed or if it is downloaded. Further, any consideration paid for electronic receipt or access to data, materials, media, information, or other form of communication that is converted to readable, usable, or viewable form by software or browsers installed on hardware located in Louisiana is also subject to sales, use or lease tax. (Revenue Ruling No. 10-001, Louisiana Department of Revenue, March 23, 2010)

Posted on April 15, 2010