Shaking things up in state and local tax
Shaking things up in state and local tax
In a recent decision, the Tennessee Court of Appeals addressed the business tax treatment of software licensing, cloud hosting, and cloud-based services, delivering a split decision with significant implications for taxpayers.
Background
SAP America, Inc. is a Delaware corporation engaged in selling or licensing enterprise resource planning software. SAP offers two primary models for customers…
The Tennessee Chancery Court for the Twentieth Judicial District held that software licenses are intangible property and thus the gross receipts from their sale are not subject to tax under Tennessee’s Business Tax Act.
The taxpayer is a software company engaged in the business of selling and licensing software used for various corporate and back…
