Over the past several weeks we’ve been looking at the taxability of Software-as-a-Service (SaaS), cloud computing and electronically downloaded software in various states throughout the country. While some states define these revenue streams as services or tangible items, others are a little less clear, which is why it’s important to understand the tax code for each state in which your business has nexus.

While many SaaS and software companies may assume they won’t be affected by recent sales tax changes, the reality is they will be affected, and they have for years; in fact, following the U.S. Supreme Court’s Wayfair decision earlier this summer, it will be even easier for traditional multi-state sellers generating revenue from SaaS, cloud computing and electronically downloaded software to establish nexus within more states, making it even more important to be aware of how each one treats these items.
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