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Cloud Computing Software Sales & Use Tax

McDermott Will & Emery

Vermont Bill Would Repeal Cloud Software Tax Exemption

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On January 16, a bill (H. 756) was introduced in the Vermont Assembly that would repeal the sales and use tax exemption for remotely accessed prewritten computer software. If enacted as introduced, the exemption would no...more

Alston & Bird

Measuring the Worth of Advisory Opinions: A New York Cloud Computing Illustration

Alston & Bird on

Guidance from state tax departments can be a useful resource for analyzing how a state’s tax laws apply to a specific set of facts. But with increasing frequency, tax departments are releasing guidance that seems less...more

McDermott Will & Emery

Illinois Department of Revenue Reaffirms Cloud-Based Services Not Taxable

McDermott Will & Emery on

In two recent General Information Letters (GILs), the Illinois Department of Revenue (Department) reaffirmed that computer software provided through a cloud-based delivery system is not subject to tax in Illinois. The...more

McDermott Will & Emery

Michigan Backs Off Cloud Tax, Refund Opportunities Available

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After refusing to back down on the issue for years, the Michigan Department of Treasury (Department) issued guidance last week to taxpayers announcing a change in its policy on the sales and use taxation of remotely accessed...more

McDermott Will & Emery

Precedential Cloud Victory in Michigan Court of Appeals

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On October 27, 2015, a three-judge panel sitting for the Michigan Court of Appeals unanimously affirmed a lower court decision finding that the use of cloud-based services in Michigan is not subject to use tax in Auto-Owners...more

Pillsbury Winthrop Shaw Pittman LLP

Four Things You Should Know about New York State’s Recent Advisory Opinion on the Taxation of Software as a Service (“SaaS”)

On May 15, 2015, the New York State Department of Taxation and Finance released Advisory Opinion TSB-A-15(2)S which concluded that sales of certain cloud computing services are not subject to New York State sales and use tax....more

McDermott Will & Emery

Tennessee SaaS Ruling Highlights Telecommunications Concerns for SaaS Providers

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The Tennessee Department of Revenue recently released Letter Ruling No. 14-05, in which it considered whether certain cloud collaboration services are subject to the state’s sales tax. At a high level, the provider’s...more

McDermott Will & Emery

Idaho Drafting Cloud Computing Regulation in the Wake of H.B. 598

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The Idaho Sales Tax Rules Committee is currently revising Rule 027, Computer Equipment, Software, and Data Services, in response to the passage of H.B. 598. The Committee met for the last time on July 24 to discuss the draft...more

McDermott Will & Emery

The Vermont Department of Taxes Begins to Take a Close Look at Cloud Computing

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On June 30, 2013, the Vermont sales tax moratorium on remote access to software expired. At that time, the Vermont Department of Taxes (Department) reverted to its prior position that interpreted, without any analysis, the...more

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