The Taxation of Remote and Internet-Based Computer Software Products and Services Study Committee (the “Committee”) was empaneled by the Mississippi Legislature to examine and develop recommendations regarding the taxation of remote and internet-based computer software products and services following the Mississippi Department of Revenue’s (“DOR”) proposal in September 2021 to update its regulations. The proposed regulations would have significantly expanded the tax base to reach software, software as a service, platforms as a service, infrastructure as a service, and “cloud computing.” Appearing to question the DOR’s proposal, the Legislature instructed the Committee to make “recommendations for which of such products and services should be taxable and the manner in which the products and services should be taxed.” On October 1, 2022, the Committee issued a report recommending the exclusion from the sales and use tax of: (1) “all sales of software to business consumers and used as a business input,” and (2) “all software-related services to business consumers and used as a business input.” The Committee adopted no specific recommendation as to sales of software and related services to non-business consumers.
Read the full report here.