H.B. No. 569 Summary

• Modifies the standard for determining when sales and use tax applies to automatic data processing, computer services, electronic publishing services, and electronic information services provided together with other services.

• Changes the tax treatment by establishing that these business-related electronic services are not subject to tax when provided in conjunction with other services if either: (1) the electronic services are provided primarily for the performance or delivery of the other service(s), or (2) the primary benefit sought by the consumer is personal and professional services rather than the electronic services.

• Clarifies that sales of these electronic services between affiliated group members (where one person owns or controls more than 50% of another's business) are not taxable sales.

• Applies the amendment on and after the first day of the first month beginning on or after the effective date of the act.