- Starting January 1, 2027, California and Colorado will tax SaaS and other electronically delivered prewritten software.
- California’s SB 122 makes prewritten software taxable regardless of delivery method, while custom software stays exempt.
- In California, purchasers with over $5 million in annual electronic software purchases from a retailer must self-assess and pay use tax.
- Colorado’s HB 26-1223 expands taxable software to include downloads, apps, and remote internet access, while keeping custom software and individually negotiated licenses exempt.
Source: irglobal.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
