SB 2449 Summary

• Defines "computer software" as programs or routines used to perform tasks on computers or equipment, and excludes charges for physical infrastructure like servers and platforms.

• Establishes that computer software and computer software services are taxable under Mississippi sales and use tax at the same rates as tangible personal property, with services only taxed if performed within the state.

• Provides safe harbor allocation methods for taxpayers to apportion computer software and services between intrastate and interstate commerce, and allows credits for taxes paid to other states up to Mississippi's tax rate.

• Treats computer software transfers between commonly owned, related, or affiliated entities as nontaxable transfers between different segments of one legal entity, with proper tax credits allowed.

• Removes the previous 7% tax on electronically delivered products (music, games, software, etc.) under telecommunications services and reclassifies these items under general computer software and digital product taxation rules.