This month, we continue our blog series with a contrast of a couple of western states – Utah and Nevada – specifically their treatment of technology items for sales tax purposes.

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Software as a Service (SaaS) in Utah vs. SaaS in Nevada

Software as a Service (SaaS) is subject to sales tax in several jurisdictions across the country. Approximately half of states do tax the SaaS revenue stream. As you’ll see below, these two states differ regarding their treatment of sales tax for SaaS.

Cloud Computing Services are subject to sales and use tax in Utah.

Utah imposes sales and use tax on license fees for remotely accessed prewritten software, including hosted software, application service provider software, software-as-a-service (SaaS), and cloud computing applications, purchased for use of the software in Utah.

SaaS is exempt from sales and use tax in Nevada.
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