Tax Base: Cloud Computing: Revenue Departments' Cloudy Minds Lead to Inappropriate Assessments—Part 2

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This second of a three-part article continues the analysis of why the various state departments of revenue have incorrectly treated cloud computing services as taxable transfers of tangible personal property. In extending the discussion to five additional states: Michigan, New York, Pennsylvania, Utah and Vermont, the authors Arthur Rosen, Leah Robinson and Hayes Holderness, of McDermott Will & Emery LLP, conclude that agency treatment does not withstand statutory scrutiny, primarily because users never “possess” the underlying software.