BOISE – Multimillion-dollar software installations by corporations will be tax-free in Idaho on July 1, while downloads of e-books or entertainment software will still be taxed under a new law that goes into effect that day.
The state stands to lose as much as $40 million a year in sales taxes in the future, much of that from large software system upgrades at big businesses.
It all stemmed from efforts by the Idaho Technology Council and businesses to get Idaho lawmakers to remove sales taxes from “cloud” services, where the software is accessed remotely and isn’t installed on a business’s own computers. Legislation in 2013 granted a sales tax exemption for the use of cloud-based software, after tech businesses told lawmakers that some likely would leave Idaho without such an exemption. More here. Betsy Russell, SR