Will Cloud Computing Start Being Taxed by Government?
Grazed from Midsize Insider. Author: Chrissie Klinger.
A lot of businesses are using cloud services in an effort to save money. Some businesses, though, are starting to realize how much money cloud computing could cost them if the government started taxing everything they were doing in the cloud. WBUR reported that Massachusetts’ top tax official, Amy Pitter, stated the ‘cloud’ is an "evolving area of the law." A recent public letter signed by Pitter described the state’s policies on which cloud services are taxable and which are not. Fortunately for businesses, storing data in the cloud on services like iCloud and Google Docs, is currently not considered taxable in Massachusetts, but what about other states?
Last year at this time only a handful of states were even looking at taxing any cloud related product or service, now more than half of the 50 U.S. states are exploring how to tax cloud services, including SaaS. At this time, the U.S. government expects cloud services to fall under current tax laws, allowing each state to determine tax implications and guidelines. Unfortunately, as states start to develop guidelines they are beginning to realize this might lead to new federal laws and regulations due to the complexity of cloud computing…


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