News & Analysis as of

Software Sales & Use Tax Department of Revenue

McDermott Will & Schulte

Generative AI chatbot service not subject to Indiana sales tax

In one of the first pieces of administrative guidance addressing the sales tax treatment of generative artificial intelligence (AI) services, the Indiana Department of Revenue (DOR) recently issued a revenue ruling confirming...more

Bradley Arant Boult Cummings LLP

Changes to Taxation of Software to Apply Prospectively and Challenges to Eliminating Alabama's Controversial Grocery Tax - SALT...

As previously reported, in Ex parte Russell County Community Hospital, the Alabama Supreme Court announced that all software, including customized software created for a particular user, is "tangible personal property" and...more

Bradley Arant Boult Cummings LLP

Alabama Supreme Court Issues Landmark Ruling on the Taxation of Computer Software - SALT Alert: Alabama Edition

In a 5-3-1 decision, the Alabama Supreme Court ruled on Friday that the sale of computer software in Alabama is subject to sales or use tax, even if it’s customized in whole or in part for a particular user (see Ex parte...more

McDermott Will & Schulte

Illinois Department of Revenue Reaffirms Cloud-Based Services Not Taxable

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

Baker Donelson

Spotlight on Manufacturers: Tennessee's 2015 Tax and Related Legislation

Baker Donelson on

Manufacturing is a primary driver of our economic growth. As such, those businesses involved with fabricating, processing, converting and producing goods in today's marketplace must be ever-vigilant regarding new laws that...more

McDermott Will & Emery

Tennessee SaaS Ruling Highlights Telecommunications Concerns for SaaS Providers

McDermott Will & Emery on

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

Foley Hoag LLP

Computer System Design and Software Modification Services Now Subject to the Massachusetts 6.25% Sales and Use Tax

Foley Hoag LLP on

Effective as of July 31, 2013, the Massachusetts 6.25% sales and use tax has been expanded to apply to certain types of computer system design and software modification services (“Computer/Software Services”)....more

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