[CLUE-Talk] Colorado Department of Revenue stops new software tax

[Jeffery Cann]

Who says The Government (tm) doesn't listen?

:-p
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Department of Revenue stops new software tax 

5/1/2002 12:39:00 PM 
By Todd Neff

Colorado Department of Revenue Executive Director Fred Fisher has blocked 
regulatory updates introduced by his department that imposed a state sales 
tax of 2.93 percent on custom software developed by IT service providers.

The change, which was scheduled to go into effect on May 20, would have 
increased costs to businesses that use outside help to develop custom 
software or integrate package systems. It would have also imposed an 
administrative burden on custom software developers and software integrators, 
which would have needed to track and record which elements of a software 
implementation were taxable and which were not. 

The technology industry and some of Colorado's largest corporations opposed 
the regulatory updates. The Colorado Association of Commerce and Industry 
(CACI) and the Colorado Software & Internet Association (CSIA) led efforts 
last month to oppose the changes. 

URL:
http://www.frtechbiz.com/displayarticledetail.asp?Art_ID=56999