Court decision that ‘canned software’ is taxable as tangible personal property raises questions, concerns

Of Counsel Mike Semes and Associate Matthew Sommer authored an Aug. 28 Tax Notes article titled "A Perfect Storm Is Forming in Arizona” (subscription required).

In this second article in a three-part series, the authors examine the consequences of an Arizona Appeals Court decision holding that “canned software is perceptible to the senses and therefore taxable as tangible personal property” – and they address the danger of letting that decision stand.