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In a recent Missouri Department of Revenue letter ruling (LR 6991), the state of Missouri determined that 2026 purchases of canned software downloaded electronically over the internet are not subject to sales or use tax. However, if that canned software is 2026
The majority of states which have addressed the issue and have concluded that software (at least unbundled software) is not tangible personal property for ad valorem tax purposes and therefore is generally not taxable.
Purchases of software maintenance/support delivered electronically (and remotely by phone) are not subject to sales or use tax if the original software was delivered electronically, but are generally taxable if it was canned software delivered in a tangible format (unless the maintenance/support is optional and is
Because downloadable prewritten software is not identified as tax-exempt, it is treated as generally taxable regardless of how it is transferred or delivered to the purchaser.
On June 30, 2021, Missouri Governor Mike Parson signed SB 153 & 97, finally creating economic nexus provisions in the state, effective January 1, 2023. The state will have an economic nexus threshold of $100,000 in cumulative gross receipts in a twelve-month period for both remote sellers and marketplace facilitators.
(I) The sale of software as a service is not subject to tax. The service provider must pay sales or use tax on any tangible personal property used to provide the service that is purchased or used in Missouri.
(I) The sale of software as a service is not subject to tax. The service provider must pay sales or use tax on any tangible personal property used to provide the service that is purchased or used in Missouri.
But, in most, it's a mixed bag. California exempts most software sales but taxes one type: canned software delivered on tangible personal property an actual object you can touch or hold, such as a disc. Nebraska taxes most software sales with the exception of one type: SaaS.
Sales of digital products are exempt from the sales tax in Missouri.