Buying something is different from renting it. That distinction is at the heart of the debate in a dozen states about how -- or whether -- to tax cloud computing services. In the old days (say, back in the 1990s) individuals or companies wanting to use software went to a store and bought a disk. That changed with the advent of downloadable software, but states ruled that downloads were still taxable purchases. The software may not have been sold as a physical item, but its code was still a tangible product consumers were taking possession of.
To read the full, original article click on this link: Cloud Computing Taxes Up in the Air in States
