Illinois governor proposes sales tax changes
1. Initiate sales tax on custom software: The governor estimates a business tax increase of $64 million by eliminating the distinction between canned software sold at retail (subject to sales tax), custom software (subject to service occupation tax on the value of tangible personal property transferred with the software) and software licensed or leased by the developer (currently not taxed). The Governor’s proposal would either repeal the Department of Revenue regulation that distinguishes between a sale and a license of software or create an entirely new tax on revenues from software licensing.
I used to live in Illinois long ago. Makes me glad I don't anymore. I really don't understand the logic behind taxing innovation and businesses. Lets drive all the custom software developers out of the state. Makes perfect sense to me. Should really help the economy.
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