This morning, Indiana Governor Eric Holcomb signed a bill into
law that will exempt cloud-based software transactions from State
Gross Retail and Use Taxes, effective July 1, 2018. The signing
took place at the headquarters of Indiana-based cloud service
provider DemandJump, Inc.
Specifically, Senate Enrolled Act No. 257 (which was
unanimously passed by both chambers of the General Assembly) will
add a new section to the Indiana Code chapter on retail
transactions that specifically provides that "[a] transaction
in which an end user purchases, rents, leases, or licenses the
right to remotely access prewritten computer software over the
Internet, over private or public networks, or through wireless
media: (1) is not considered to be a transaction in which
prewritten computer software is delivered electronically; and (2)
does not constitute a retail transaction." The new law will
also clarify that the sale, rental, lease or license of prewritten
computer software
