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Taxability Of SaaS In Arizona, District Of Columbia, Iowa, Mississippi, Rhode Island And Tennessee

We recently posted an article about the challenges of SaaS taxability and discussed the reasons why SaaS is a particularly sticky subject, tax-wise.

While there are a number of reasons for it, the complexity largely boils down to irregularities in SaaS definitions between states, little uniformity when it comes to SaaS tax legislation and complication brought about by the very nature of the product (is it a “software” or a “service?”). Economic nexus adds an additional layer of difficulty.

Now, we’d like to give you an in depth look at SaaS taxability in 6 more states.

1. Taxability of SaaS in Arizona
Economic Nexus Provisions: Yes

As of 2020, remote companies that make $150,000 in gross sales of tangible personal property or services will trigger Arizona’s economic nexus. Sales made through a marketplace are not included. Starting January 1, 2021, the threshold will lower to $100,000.

SaaS and Cloud Computing Tax Rules: Taxable
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Written by Monika Miles | Posted in SaaS Taxability • SAAS Taxes • TaxConnections

Monika Miles- Taxability of SAAS In North dakota, South Dakota, Nebraska

In the wake of the Wayfair decision, there are a lot of questions surrounding sales taxes across the many U.S. states. While many queries we receive revolve around establishing physical presence and nexus for retail items, the next important question a company must always ask is, “If I have nexus, is my product taxable?” In that regard, there are a few areas many business often overlook: Software-as-a-Service (SaaS), cloud computing and electronically downloaded software. Are these items taxable? It depends.

A few months ago we explored the taxability of SaaS, cloud computing and electronically downloaded software in 15 states across the country; today we’re taking a look at the tax ramifications of three more states: North Dakota, South Dakota and Nebraska.

Nexus & Constitutional Issues for Middle America Companies

Following the Wayfair decision, do companies in North Dakota, South Dakota and Nebraska need to pay online sales tax to states in which they’ve established nexus? And if so, what is the tax threshold?

Written by Monika Miles | Posted in Monika Miles • Taxability of SAAS