Massachusetts Tax Board: Online Software Provider Can Use Single Sales Factor

Tax Notes
January 12, 2022

Richard Jones was quoted in the article, "Massachusetts Tax Board: Online Software Provider Can Use Single Sales Factor," which was published by Tax Notes on January 12, 2022.

The article discusses Akamai Technologies Inc. v. Commissioner, in which the Massachusetts Appellate Tax Board ruled that Sullivan client, Akamai Technologies, manufactures standardized computer software and that "its manufacturing activities were at all time substantial." Therefore, the company was entitled to use single-sales-factor apportionment for corporate excise tax purposes, the board found in its opinion.

Rich told Tax Notes that he is pleased that the board’s opinion focused on the substance of the sale. The opinion "offers technology companies and their customers much-needed guidance on how to
characterize IT offerings, and thus greater predictability in determining the state tax implications of their sales and business activities."

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