Technology is mission-critical for every industry, so it’s always nice when states reduce sales tax on new tech.
California – The result of a recent court case means that any software your company buys stored on a physical device should come sales tax-free, thanks to the an exemption under the state’s technology transfer agreement.
Even if you purchase new software on, say, a CD, it’s exempt – the state can’t tax the CD as tangible personal property since it’s the software that’s really being sold.
North Carolina – This state is offering a couple of exemptions to data centers.
Starting Jan. 1, 2016, qualifying data centers can purchase electricity and support equipment sales tax-free.
To qualify, a company needs to:
- meets wage standards and health insurance requirements, and
- receive a written determination from the Secretary of Commerce that at least $75 million has been or will be invested within five years of the first tangible property investment made on or after Jan. 1, 2012.