Apple Avoids Sales Tax on iCloud Subscriptions in Louisiana

Personal electronic storage services, such as Apple Inc.'s iCloud subscriptions, aren’t subject to New Orleans or Louisiana sales and use tax, the Louisiana Board of Tax Appeals ruled.

The Internet Tax Freedom Act, a federal law that prohibits state and local governments from taxing internet access, bars such taxation, the board said. It also found that the subscription constitutes a service, and services aren’t typically taxable under Louisiana law.

Apple attorney Mark E. Nebergall of McDermott Will & Emery said the ruling is the first in the country to apply ITFA to cloud storage services.

The ...