Last year Idaho's House of Representatives enacted HB 243, exempting cloud computing services
from Idaho's sales tax. However, the legislation led to more
questions and uncertainty. Thus, Idaho's House of
Representatives introduced HB 598 to provide clarity to HB 243. However,
based on the governmental entities' comments and
legislation many issues remain unsettled.
Under Idaho's current
regulations, all tangible personal property is subject to sales
tax. Tangible personal property includes software that is not
customized and is not application software accessed over the
internet or via wireless media. However, this exclusion does not
include application software whose primary purpose is for
entertainment use. The exclusion also does not include software
that can be accessed over the Internet where the same software is
sold in stores or by electronic download. This exclusion results in
confusion and inconsistency. For example, if a user accesses tax
software that
