The debate raised here recently just became a Wall Street Journal cover story. In a lengthy article on the front page of today’s Business Technology section, the issue of state taxes on cloud-based technology took center stage, focusing on Idaho and featuring TSheets.
A month ago, our CEO Matt Rissell posted his take on the subject, “Of Tech and Taxes: How a SaaS tax could hurt our customers!” Acknowledging that he was teetering on a tightrope, he compared the fast-paced, customer-pleasing SaaS tech sector that has “the potential for mass innovation at a low cost” to the typical state’s tax division “moving at tortoise speed.” That is, until the recent controversial decision by the Idaho State Tax Commission to tax—and even penalize with back taxes—cloud-based subscription services. Citing their “poorly educated stance…[this new tax] could be the death knell to the booming tech sector.”
As the Feb. 7 WSJ article confirmed, this issue is nationwide growing concern, with individual states taking a stance, and Idaho being the latest to enter the fray. Read more about how Boise-based Micron Technology and IdaCorp, the Idaho corporate office of SuperValu, and the Idaho Technology Council have joined together with TSheets to back an effort to reverse the Idaho State Tax Commission’s stand on cloud-based technology taxes.
We want to hear from you, too. Should SaaS solutions be taxable? Do you own a business or are you a customer who might be affected by this tax?