Bohemia, NY (PRWEB) March 18, 2013
On March 18, 2013, Diapoules and Feinstein CPAs P.C. release a statement following news of the Idaho House Revenue and Taxation Committee agreeing to introduce a legislation to clarify that cloud computing services are not tangible goods subject to a sales tax.
According the Ventura County Star article, high-tech businesses in Idaho requested the legislation after a Tax Commission memo from October made software something that was taxable property no matter how it was delivered.
Jay Larson, CEO of Idaho Technology Council stated in the article that, “This tax has caused a lot of people to consider moving their operations out of the state so they would not have to pay that tax. It says if your servers are in the state of Idaho, you pay 6 percent more than if your server is in the state of Oregon.”
The article goes on to mention that lawmakers should focus on trying to keep Idaho competitive by avoiding tax problems, and need to try to attract high-tech companies. Jay Larson continued to say, “this legislation will help set the foundation to continue to show that we have the right infrastructure from a public policy standpoint to support tech companies and software companies as they grow and develop."
Long Island CPA Jim Diapoules of Diapoules and Feinstein CPAs P.C. responds to the new legislation. “While everyone agrees that Idaho needs to try and keep their high-tech businesses in their state, it is facing the same issue all states are now facing. How do we handle internet operations and commerce? States are losing tax revenue since internet commerce doesn’t fit into their tax structure. As Idaho has found, creating the new rules regarding the taxation of internet transactions is not going to be easy.”
Diapoules and Feinstein CPAs P.C. have been providing accounting, auditing and tax services to the Greater New York City area since 1989. D&F provides our clients with great personal attention and years of professional experience in order to see them succeed and help them to feel confident.