United States

Rhode Island: Budget Bill Imposes Tax on Vendor Hosted Prewritten Computer Software

Jun 25, 2018
From KPMG TaxWatch

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On June 22, 2018, the Rhode Island budget bill, House Bill 7200, was signed into law. Notably, the bill expands the definition of a “retail sale” subject to sales and use tax to include sales of “vendor-hosted prewritten computer software.” Under the bill, “vendor-hosted prewritten computer software" means prewritten computer software that is accessed through the Internet and/or a vendor-hosted server regardless of whether the access is permanent or temporary and regardless of whether any downloading occurs. This change is effective October 1, 2018. Please stay tuned to TWIST for future legislative updates.

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.