States starting to tax the cloud
Grazed from ITWorld. Author: Brian Proffitt.
Cloud computing, particularly public software as a service (SaaS), may have an unlooked-for advantage over "shrink-wrapped" software–freedom from the tax man. But that advantage may not last forever.
Many states in the US have particular rules about sales taxes that mostly revolve around the pre-Internet rule of thumb that runs along the lines of "if the business does not have a presence in the state, then they don’t need to pay sales taxes."
This is one of the reasons that (until recently) Amazon could get away with selling goods so cheaply: they didn’t have to pay sales tax because for the most part they weren’t a physical presence most states. As various state lawmakers clued into the fact that there was indeed a lot of untaxed commerce being done within their borders, they began to impose sales tax on Amazon’s sales…

