The Supreme Court of Pennsylvania held that a license to use
canned software is a license to use tangible personal property and
is therefore taxable for Sales and Use Tax purposes. Dechert
LLP v. Commonwealth, No. 12 MAP 2008 (Pa., July 20, 2010).
Oral argument on the appeal was held over 1 ½ years ago.
The statute defines tangible personal property as:
Corporeal personal property including, but not limited to,
goods, wares, merchandise, steam and natural and manufactured and
bottled gas for non-residential use, electricity for
non-residential use, prepaid telecommunications, premium cable or
premium video programming service, spirituous or vinous liquor and
malt or brewed beverages and soft drinks, interstate
telecommunications service originating or terminating in the
Commonwealth and charged to a service address in this Commonwealth,
[and] intrastate telecommunications service [with certain
exceptions].
