Cloud Computing and Support for Canned Software is Taxable in Pennsylvania
The Pennsylvania Board of Finance and Revenue recently reviewed petitions from One Market Data LLC, which contested the revocation of its sales tax license and the assessment of taxes, penalties, and interest for the period between January 2020 and December 2022. The company argued that its services were not subject to sales tax under Pennsylvania law.
Following a detailed review, the Board determined that One Market Data LLC’s services—including installation, setup, and training related to licensed software—qualified as taxable cloud computing and support services for canned computer software. As a result, the Board upheld the tax assessment and denied the company’s request for interest abatement. However, since the company had paid its outstanding tax liabilities, the Board agreed to reinstate its sales tax license, provided no additional tax liabilities remained.
This ruling highlights the complexities of distinguishing between taxable and non-taxable services in the tech industry and underscores the importance of compliance with Pennsylvania’s tax regulations. (BF&R Docket Nos. 2317877 and 2317876, Pennsylvania Board of Finance and Revenue, June 28, 2024).
Cloud Computing and Support for Canned Software is Taxable in Pennsylvania
