Michigan Court Of Claims Declares Cloud Computing Nontaxable Service While Legislature Idles - McDermott Will & Emery

Michigan Court Of Claims Declares Cloud Computing Nontaxable Service While Legislature Idles

Overview


Stephen Kranz asserted that the Michigan Court of Appeals Auto-Owners Insurance decision has the effect of exempting software as a service from both sales and use tax and thus “constitutes a broad win for taxpayers.” Mr. Kranz also said the court’s analysis in the decision could influence how Streamlined Sales and Use Tax Agreement member states think about such terms as “deliver” and “transfer” in connection with taxing cloud computing services.