Alabama – Alabama Supreme Court Holds that All Software is Subject to Sales and Use Tax, While Confirming that Separately Invoiced Services for Custom Software are Not Subject to Tax

In a recent decision, the Alabama Supreme Court held that the sale of computer software, whether “canned” or customized, is subject to Alabama sales and use tax, while confirming that separately invoiced services for custom software programing accompanying the conveyance Continue reading Alabama – Alabama Supreme Court Holds that All Software is Subject to Sales and Use Tax, While Confirming that Separately Invoiced Services for Custom Software are Not Subject to Tax

Virginia – Switchgear Equipment Used to Provide Power to Data Center Qualifies for Exemption (Rulings of the Tax Commissioner 10/18/13 – Doc No 13-183)

SALT Report 3133 – Virginia Tax Commissioner ruled on Oct. 18, 2013 in response to a request made by an out-of-state dealer in regards to the application of retail sales and use tax on switchgear equipment sold to a Contractor Continue reading Virginia – Switchgear Equipment Used to Provide Power to Data Center Qualifies for Exemption (Rulings of the Tax Commissioner 10/18/13 – Doc No 13-183)

New York – Taxability of Charges for Online Software Tool

SALT Report 3035 – The New York Division of Taxation issued an advisory opinion regarding whether a Taxpayer’s online software assessment tool and the reports it generates are subject to sales and use taxes. The Taxpayer’s software is used to Continue reading New York – Taxability of Charges for Online Software Tool

Maine – Warranties, Service Contracts and Maintenance Agreements

SALT Report 3013 – Maine Revenue Services has revised a sales and use tax bulletin that addresses warranties, service contracts, and maintenance agreements to reflect recent legislative changes.  Specifically, the publication notes that the sale of an automobile extended service Continue reading Maine – Warranties, Service Contracts and Maintenance Agreements

Illinois – Taxability of Computer Software and an Update on Private Letter Rulings Regarding this Topic

SALT Report 2416 – The Illinois Department of Revenue issued guidance regarding the application of sales and use tax to computer software and maintenance agreements. In this particular case, the Taxpayer requested that the Department review its Software License Agreement Continue reading Illinois – Taxability of Computer Software and an Update on Private Letter Rulings Regarding this Topic

Utah –Sales Tax Information for Computer Service Providers

SALT Report 1556 – The Utah State Tax Commission recently updated their sales and use tax publication regarding software, computers, and equipment. The publication provides guidance on the taxability of several types of purchases and services. Pre… Continue reading Utah –Sales Tax Information for Computer Service Providers

Colorado – Taxability of Computer Software

SALT Report 1534 – Effective July 1, 2012 computer software in Colorado will be subject to sales or use tax if it meets all of the following criteria: The computer software is prepackaged for repeated sale or license, The use of the computer softw… Continue reading Colorado – Taxability of Computer Software

New York – Software Used to Transfer Information is Taxable

SALT Report 1477 – The New York Department of Taxation and Finance determined that a taxpayer’s sale of products used to transfer information between businesses and their customers is considered the sale of prewritten software and subject to New… Continue reading New York – Software Used to Transfer Information is Taxable

Illinois – Taxability of Computer Software and Licenses

SALT Report 1471 – The Illinois Department of Revenue issued a general information letter regarding the taxation of computer software and Licenses. In general, service occupation and use taxes do not apply to sales that do not involve the transfer… Continue reading Illinois – Taxability of Computer Software and Licenses

Utah – Taxability of Computer Software Maintenance Contracts, Repairs, and Renovations

SALT Report 1453 – Recently enacted legislation in Utah amends previous sales and use tax provisions regarding computer software maintenance contracts, repairs, renovations and products transferred electronically. The also bill updates prior defin… Continue reading Utah – Taxability of Computer Software Maintenance Contracts, Repairs, and Renovations