State government panel considers cloud computing tax issue
February 17, 2013
Grazed from SFGate. Author: Editorial Staff.
The Idaho House Revenue and Taxation Committee has agreed to introduce legislation to clarify that cloud computing services delivered over the Internet aren’t tangible goods subject to sales tax.
The Spokesman-Review reports (http://bit.ly/VXhBd9) that high-tech businesses in Idaho requested such legislation after an Idaho Tax Commission memo in October interpreted a 1993 state law as saying software is taxable property no matter how it is delivered…
Jay Larson, CEO of an industry organization called the Idaho Technology Council, told the panel that cloud computing involves people using the Internet to rent computing power, electronic storage space and other services. He said the state Tax Commission in recent months told some high-tech firms they have to pay large amounts in back sales taxes…
Read more from the source @ http://www.sfgate.com/business/article/House-panel-considers-cloud-computing-tax-issue-4284552.php