We received news from the Idaho Technology Council that Idaho’s Governor, C.L. “Butch” Otter, this week signed a piece of legislation, HB 598, that will better define how Software-as-a-Service fits within the state’s tax law, and will support growth of SaaS, as well as other budding technologies in Idaho. HB 598 passed the Idaho Senate by a 33-0 majority and the Idaho House of Representatives by 58-12. This week’s legislation is the answer to a series of challenges raised by an Idaho Tax Commission bill in 2013.
As of this writing, the legislation signed into law this week will place SaaS in the same tax category as barbers and tax professionals. State Governor Otter said this about the bill’s passing: “This legislation makes doubly clear that the intent of the Legislature and the commitment of my administration is that we support the growth and development of Idaho’s high-tech industry,” Gov. Otter said. “Services are not taxed in Idaho, and our tax agency’s activities will reflect Idaho’s standard that software services delivered through the Internet are no different than the services provided by tax professionals or barbers.”
