Legislation keeps up with cloud computing
We get it — the cloud is (relatively) new, and people are still figuring it out. It’s a new frontier that is waiting to be explored and built upon. Seeing news stories like this shows that the cloud is the new business must-have.
BOISE, Idaho (AP) — The House voted to exclude so-called cloud computing services delivered over the Internet from being charged a sales tax by the state. The 65-2 vote on Monday sends the measure to the Senate. The Idaho Technology Council, which represents technology businesses in the state, asked for the measure after the Idaho Tax Commission interpreted a 1993 state law as saying software is taxable property — no matter how it is delivered. In cloud computing, people or companies rent computing services or storage space over a network, rather than buy actual software. House Majority Leader Mike Moyle of Star argued this change was necessary, to make sure Idaho didn’t fall behind advancements in technology. Only Democrats John Gannon of Boise and Shirley Ringo of Moscow voted against the bill.
This is a great move, Idaho! We are thrilled to see that even legislation is beginning to recognize cloud hosting as a service, not a product. Today’s technology is changing, and it’s important that our laws and regulations are able to keep up. Had this gone the other way, cloud service providers would be paying taxes on products that they’re not providing. We’re happy to be a cloud hosting service provider for an array of accounting applications.