STATEHOUSE (March 26, 2018) — Gov. Eric Holcomb Friday signed a new law sponsored by State Rep. Todd Huston (R-Fishers) exempting “software as a service” from state sales tax.
“Software as a service,” also referred to as “on-demand software,” is a growing software delivery model that allows a program or application to be accessed remotely via the internet without the need to either download or purchase a physical copy. Under the new law, these services will not be subject to Indiana’s 7 percent sales tax.
“Indiana is already known as a welcoming environment for the tech and software industries, proven by the fact global companies like Salesforce and Infosys have recently relocated and expanded here,” Huston said. “We want to make sure our state continues to stay ahead of the curve, by modernizing our regulations and taxes to accommodate IT innovations, such as remotely accessed software as a service. As one of only a handful of states to exempt these innovations from their sales tax, Indiana will be sending a clear message we are a tech friendly state.”
According to Huston, Indiana is now 1 of only 4 states that exempts these transactions from their statutory sales taxes.
For more information on Senate Enrolled Act 257, visit iga.in.gov.
-30-
State Rep. Todd Huston (R-Fishers) represents House District 37,
which includes portions of Hamilton County.
A high-resolution photo of Huston can be downloaded by clicking here.
