As discussed in prior blog posts, Ruling No. SUT-17-001 issued by the Pennsylvania Department of Revenue in February raised concerns that the Department’s interpretation of the term “support” in Act 89 of 2016 exceeded the scope of the statute. Act 89 imposed tax on digital products, and on “maintenance, updates and support” for such products, as of August 1, 2016. In Ruling No. SUT-17-001, the Department characterized certain “consulting” and “training” services as taxable “support” services. The Department has since removed Ruling No. SUT-17-001 from its website – presumably because it is reconsidering the scope of taxable “support” services for computer software under current law.
