Section 38 Remote Software Tax Clarification 2

Said section 1 of said chapter 64H, as so appearing, is hereby further amended by striking out the definition of "tangible personal property" and inserting in place thereof the following definition:-

''Tangible personal property'', personal property of any nature consisting of any produce, goods, wares, merchandise and commodities whatsoever, brought into, produced, manufactured or being within the commonwealth, but shall not include rights and credits, insurance policies, bills of exchange, stocks and bonds and similar evidences of indebtedness or ownership. For purposes of this chapter, ''tangible personal property'' shall include gas, electricity and steam. A transfer or license of standardized computer software, by virtual, electronic, telephonic or other means and including the transfer or license of the right to use standardized computer software that is remotely hosted, shall also be considered a transfer of tangible personal property. The commissioner may, by regulation, provide rules for apportioning tax in those instances in which software is transferred for use in more than one state.

This section, along with one other, clarifies that the purchase of a license to access remotely hosted computer software is a taxable transfer of tangible personal property.