Proposed rule for sales tax on cloud computing services withdrawn in MS
If you’re paying for cloud computing services in the Magnolia State, there’s good news: The Dept. of Revenue has just withdrawn a proposed rule to make various cloud computing services subject to sales tax.
As written, the proposed rule would’ve imposed the state sales tax on any Software as a Service (SaaS) solution, as well as any platform as a service or infrastructure as a service solutions delivered via the cloud.
Although there are no immediate plans to tax cloud-based solutions in Mississippi, be aware: The governor signed SB 2831 in March 2022. This bill created the Taxation of Remote and Internet-based Computer Software Products and Services Study Committee. The committee’s purpose is to review current sales and use tax laws to create recommendations for taxing internet-based computer software – including cloud computing applications.
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