Matt Hunsaker Comments on Mississippi Proposal to Tax Cloud Computing Services

News / September 27, 2021

Partner Matt Hunsaker is quoted in an article that was published by Law360’s Tax Authority on Sept. 27, 2021. The article “Miss. Floats Rule Applying Sales Tax to Cloud Computing” reports on proposed tax amendments that would make taxable certain services delivered through “cloud computing models” and include definitions for cloud computing, software as a service, platform as a service, and infrastructure as a service.

Hunsaker told the publication that it's unusual for states to incorporate technical definitions of the primary categories of cloud computing services through new regulations.

"While most companies generally welcome additional guidance in the area of cloud computing, the decision to extend sales tax to the whole host of cloud services really ought to be done legislatively," Hunsaker said. "Cloud services include much more than remotely accessed software, and taxing all of them under the guise of capturing updated software delivery models arguably reaches beyond the statute."

Read the article (registration required).

Related Services