Vermont Cloud Computing and Taxation

The Vermont Cloud Computing Sales Tax measure (H. 757) has met with some complicated discussion. The bill was originally submitted by Vermont Representative Heidi Sheuermann, R-Stowe, who, after modifications were made by the House Ways and Means Committee, requested to withdraw. The effort to withdraw the bill was denied by a majority vote.

But now the Senate Finance Committee has had their chance to review.  And though headlines are screaming that the Committee has voted to approve the bill, the reality is they “…proposed the moratorium as a compromise.”

According to the BurlingtonFreePress, “The committee voted 6-1 to recommend a one-year moratorium on collection of the tax.” However, the Vermont Press Bureau says they voted “…to back a three-year moratorium on taxation of cloud computing services and create a study committee to examine the issue and help decide whether to make the moratorium permanent.” In addition, the Bureau says the “…moratorium clashes with a bill the House Ways and Means Committee approved earlier this year that did not include a moratorium.”