The question of whether or not cloud computing services should be subject to sales tax has long plagued Vermont legislators. Now, it seems, the matter is settled.
It was resolved in one simple sentence tucked into recently enacted Senate Bill 138:
“ Charges for the right to access remotely prewritten software shall not be considered charges for tangible personal property under 32 V.S.A § 9701(7).”
The exemption for prewritten software accessed remotely takes effect on July 1, 2015.
This and other aspects of the measure were lauded by the governor for sending “a strong signal that Vermont is a tech friendly state in which to locate and grow a tech business.”
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Avalara Author
Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.