Sales Tax on Computer Design, Software Modification Services: Massachusetts Issues Initial Guidance, Yet Questions and Challenges Remain

On Wednesday, July 24th Massachusetts enacted H.B. 3535, An Act Relative to Transportation Finance (“the Act”), which was passed by legislative override of Governor Deval Patrick’s veto.  The Act includes several significant tax provisions, such as the adoption of market-based sourcing for receipts from other than tangible personal property sales and an increase in the cigarette tax. But perhaps […]

Sales Tax on Cloud Computing, SaaS and Related Business Solutions: Massachusetts Issues Draft Directive, Provides Criteria for Establishing Taxability

  “Cloud computing”, “Software-as-a-Service”, “business solutions” which include an incidental transfer of software – subject to Massachusetts sales tax, or not? A recently issued Massachusetts Department of Revenue Working Draft Directive establishes criteria for determining whether transactions involving software and related solutions are subject to the Massachusetts sales tax. _______________________________________________ Massachusetts Issues Working Draft Directive 13-XX, […]

“Clouding” the Sales Tax Issue

The following is a guest post by Diane Yetter, one of the nation’s leading authorities on Sales & Use Taxation and founder of the Sales Tax Institute (see end box for more about Diane). In this post, a follow-up to Diane’s recent COST presentation, “Taxing Software, Digital Goods, and the Cloud”, Diane discusses the inconsistencies in how states […]