The Technology industry is fraught with risk related to the taxability of products and services. The industry continues to modify the definition of software having moved from tangible media to downloaded software to Software as a Service (SaaS). Maintenance contracts that are part of most technology solutions can be taxed differently depending on the state and whether the contract is mandatory or optional.
The landscape is constantly changing as states look to expand the base of what is considered taxable. The best way to mitigate this type of risk is a proactive approach to taxability determination. TaxConnex has performed hundreds of taxability reviews for our clients and thus helped them manage their risk profile.