Software License Subject To Sales Tax, Minn. Court Says

Law360, New York (February 4, 2014, 9:39 PM EST) -- The Minnesota Tax Court on Tuesday released an opinion saying LumiData Inc. must pay penalties and interest for failing to collect sales tax on a computer software it licenses to distributors to help them manage their businesses, saying the licensing arrangement qualifies as a taxable sale in The Gopher State.

The Tax Court rejected LumiData's claim that it was exempt from state sales taxes because the software it licensed needed to be customized to fit the specific needs of the company's customers. LumiData was found liable for...
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