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A Chance of Clouds: Sales Tax Considerations of Cloud Computing
Posted by Claudia Mullen on Thu, Nov 5, 2015 @ 09:30 AM

Cloud computing has revolutionized how we do business, and it continues to grow exponentially. Analysts expect the public cloud market to grow from $72 billion in 2014 to $191 billion by 20201. The rise of cloud computing has leveled the playing field for startups and mid-size businesses. It has allowed these businesses to have access to costly software, hardware and infrastructure without having to make the burdensome capital investments that would previously only be affordable for larger companies. The rise of cloud computing, however, has also brought about the rise of state taxation issues. As with all emerging technological advances, states have struggled to apply their current taxation standards to cloud computing. This struggle is most evident in the area of sales and use tax where there is no uniformity among states on how to tax or even characterize these transactions.

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Topics: Claudia Mullen, sales and use tax, cloud computing

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