Legislative Update - February 16, 2010 HB1192 Passes Through House Now Moving Directly to Governor's Desk
Though HB1192 narrowly passed by a 3-vote margin today, taking the new taxes on software to Governor Ritter’s desk, your opinion still matters as CSIA continues to work on legislative matters. We also are proud that we were able to have key elements taken out of the new regulation, and all members of CSIA will receive full details about the new regulation, what is included, what is excluded, etc.
This issue has raised the level of awareness about our industry, so there are a number of initiatives still underway to help our industry’s growth. Please join us to discuss those initiatives, and we welcome your involvement.
Please also join us in contacting legislators who joined us in opposing these new taxes, and let them know we appreciate their leadership on behalf of our industry
On the bright side, we are proud that we were able to work with Senator Heath, the Governor's office, and the Department of Revenue to agree to several areas that now WILL NOT be taxed, so even with those agreements, our industry and the users of software will be saved from millions of dollars of additional taxes, as well as massive administrative headaches. As a reminder, those items that will not be taxed are included in the Legislative Declaration and include:
Would NOT tax customized software
Would NOT tax IT services or labor
Would NOT tax ASP-, SaaS-, or Cloud-delivered services
Does allow for a continued manufacturing exemption for software development used on specific equipment and for specific percentage of use
Would NOT require all companies across the state to inventory the current software being used by all employees to then pay a use tax on all software not purchased with sales tax.
We are also very proud of the now more than 335 people who have contacted elected officials through emails, calls or contacts. Thanks to you, more of our elected officials now understand the damaging effects of these new taxes, and, many have changed their minds. We also believe this initiative has awakened a somewhat quiet industry, so in the future, we know our industry will be considered more important for our economy as well as for considerations when other issues are decided.
We encourage you to become involved in CSIA’s Public Policy Committee where additional initiatives are discussed. All employees of all member companies are welcome to join this or any of our other committees, and we invite you to participate.
We also want to be sure to thank all of the elected officials who opposed this bill, and you can do that by clicking here. There may be other key legislative issues of importance to our industry, so check back regularly for updates and information.