Louisiana Software Maintenance Agreement
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How to fill out Software Maintenance Agreement?
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FAQ
California generally does not require sales tax on Software-as-a-Service.
As the world of technology evolves, so do tax regulations. Determining whether or not your SaaS product is taxable in the US, and especially in Louisiana, can be a complex process. Currently, SaaS is not generally taxable at the state level in Louisiana, but some digital goods and services are.
California is one of the few states to tax only physical goods. This means that digital goods and services, including SaaS, are generally not taxable in the state, unless the service includes creating a physical item.
In most states, where services aren't taxable, SaaS also isn't taxable. Other states, like Washington, consider SaaS to be an example of tangible software and thus taxable. Just like with anything tax related, each state has made their own rules and laws.
SaaS is taxable in Louisiana for business and personal use. SaaS is not taxable in Maine. SaaS is taxable in Maryland for personal use, but not taxable for business use. SaaS is taxable in Massachusetts for business and personal use.
A software maintenance agreement, or SMA, is a legal contract that obligates the software vendor to provide technical support and updates for an existing software product for their customers. It may also extend the expiration date of certain features, such as new releases or upgrades.
Why would a software require annual maintenance contract renewed? The purpose is to preserve the value of the software over time. The value can be enhanced by meeting additional requirements, becoming easier to use, increasing efficiency, and employing and staying up-to-date with newer technology.
The court ruled that computer software, either ?canned? or custom, constitutes taxable tangible personal property regardless of whether transmitted on media such as diskettes, by telephone lines, or by other means.