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Contact Information:
Edward S. Kisscorni, CPA
290 Suncrest Court, SW
Grandville, MI 49418

Office: 616/233-0667
Cell: 616/443-6730
Fax: 616/233-0667

Blog: www.EdKisscorni.com/Blog1
Email: Ed@EdKisscorni.com
 



 



 

 Blog 
Monday, May 02 2011

Bills Would Exclude Software Installed On Another Person's Server

Two bills were introduced in the Michigan Senate which would amend the Michigan General  Sales Tax Act and the Michigan Use Tax Act to exclude from the definition of "prewritten computer software "granting the right to use prewritten computer software installed on another person's server."  I normally do not comment on proposed legislation because so many bills get introduced, but few make it into law.  However, these amendments are significant because, if enacted, they would solve an ongoing problem for Michigan businesses.

SENATE BILL No. 335 was introduced April 26, 2011 by Senators PROOS, PAPPAGEORGE, MARLEAU, COLBECK, ROBERTSON, JANSEN, NOFS and BRANDENBURG.

The bill would amend the "sales tax act" [1933 PA 167] to change the definition of "prewritten computer software" to exclude "granting the right to use prewritten computer software installed on another person's server." as follows:

(o) "Prewritten computer software" means computer software, including prewritten upgrades, that is delivered by any means and that is not designed and developed by the author or other creator to the specifications of a specific purchaser. PREWRITTEN COMPUTER SOFTWARE DOES NOT INCLUDE GRANTING THE RIGHT TO USE PREWRITTEN SOFTWARE INSTALLED ON ANOTHER PERSON'S SERVER. 

SENATE BILL No. 336 was introduced April 26, 2011 by Senators PROOS, PAPPAGEORGE, MARLEAU, COLBECK, ROBERTSON, JANSEN, NOFS and BRANDENBURG.

The bill would amend the "use tax act" [1937 PA 94] to change the definition of "prewritten computer software" to exclude "granting the right to use prewritten computer software installed on another person's server." as follows:

(o) "Prewritten computer software" means computer software, including prewritten upgrades, that is delivered by any means and that is not designed and developed by the author or other creator to the specifications of a specific purchaser. PREWRITTEN COMPUTER SOFTWARE DOES NOT INCLUDE GRANTING THE RIGHT TO USE PREWRITTEN COMPUTER SOFTWARE INSTALLED ON ANOTHER PERSON'S SERVER. 

Posted by: Ed Kisscorni AT 12:25 pm   |  Permalink   |  0 Comments  |  Email
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