wpostServer: http://css.washingtonpost.com/wpost2

Most Read: Business

DJIA
-0.42%
S&P 500
-0.45%
NASDAQ
-0.05%
 Last Update: 04:10 AM 07/30/2014

World Markets from      

 

Other Market Data from      

 

Key Rates from      

 

Blog Contributors

Timothy B. Lee

Timothy B. Lee

Timothy B. Lee covers technology policy, including copyright and patent law, telecom regulation, privacy, and free speech. He also writes about the economics of technology. He has previously written for Ars Technica and Forbes. You can follow him on Twitter or send him email.

Brian Fung

Brian Fung

Brian Fung covers technology for The Washington Post, focusing on electronic privacy, national security, digital politics and the Internet that binds it all together. He was previously the technology correspondent for National Journal and an associate editor at the Atlantic. His writing has also appeared in Foreign Policy, Talking Points Memo, the American Prospect and Nonprofit Quarterly. Follow Brian on Google+ .

Andrea Peterson

Andrea Peterson

Andrea Peterson covers technology policy for The Washington Post, with an emphasis on cybersecurity, consumer privacy, transparency, surveillance and open government. She also delves into the societal impacts of technology access and how innovation is intertwined with cultural development.

Post Tech
About / Where's Post I.T.?   |    Twitter  |   On Facebook  |  RSS RSS Feed  |  E-Mail Cecilia
Posted at 02:21 PM ET, 08/23/2011

Cash-strapped, states going after cloud computing taxes


(bigstockphoto - BIGSTOCKPHOTO)
State governments are taking a wary look at cloud computing and how best to adjust their tax laws to keep up with shifts in technology.

According to a report from Bloomberg, state governments are taking a hard look at the way they tax transactions as the traditional point-of-sale has shifted from a countertop to a Web page.

The report said, that the very nature of transactions is changing, and it’s become increasingly difficult for states to sort out when they have a right to tax a transaction. One issue the report raised, for example, was whether states should consider data accessed in the cloud a “taxable good or a nontaxable service.”

That question goes beyond the problem of the national and international nature of large online businesses, which states have tried to combat with so-called “Amazon laws,” which require nationwide online retailers to charge state taxes on all purchases. The laws have caused rifts between Amazon.com and state governments and prompted the retailer to cut ties with partners in several states to avoid the extra taxation. The company is now an integral part of an effort to repeal a California law that requires this kind of collection.

To deal with these issues, Washington state changed its laws in 2009 to deal with the shift, the report said. The state now requires that Washington residents pay state tax regardless of how their goods are delivered.

By  |  02:21 PM ET, 08/23/2011

Tags:  Cloud Computing

 
Read what others are saying
     

    © 2011 The Washington Post Company