Michigan Court of Appeals Says Online Research Tool Not Tangible Property


Stephen Kranz expressed the hope that a Michigan court’s ruling that subscribers to online research tools primarily purchased a service rather than tangible personal property “will be the nail in the coffin on software-as-a-service being taxable by the Michigan Treasury under some distorted view of existing law.” Mr. Kranz explained that “whether you provide software-as-a-service, infrastructure-as-a-service, or platform-as-a-service, they are all services and mechanisms of delivering services to customers” and thus are not taxable.