Practitioners Highlight State Guidance on Taxability of Cloud Computing - McDermott Will & Emery

Practitioners Highlight State Guidance on Taxability of Cloud Computing

Overview


Arthur Rosen, speaking at the Institute for Professionals in Taxation’s Sales Tax Symposium in Washington, addressed the status of state taxation of cloud computing services. Mr. Rosen said state revenue departments are increasingly taking the position that a vendor providing a customer remote access to software constitutes a taxable transfer of “constructive possession” of that canned software. “However, the states are wrong,” he asserted.