Idaho Wants to Tax the Cloud

Businesses have found out that using online software services can help them cut their technology costs, but many companies in Idaho are now discovering it can also increase their tax bills.

Several Idaho companies have become the subject of audits since a recent decision by the Idaho State Tax Commission that made subscription software delivered online subject to state sales tax. The ruling was a surprise because Idaho doesn’t tax services. Professionals who provide help from accounting to appliance repair are exempt from the state’s 6% sales tax.

By STEVEN D. JONES

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