Bloomberg Tax
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Tax
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Louisiana Software Maker Can Get Manufacturer Tax Treatment

Sept. 21, 2022, 7:47 PM

Louisiana improperly calculated its assessment of corporation income and franchise tax for a company that makes software, the state tax board ruled.

Cervey LLC, which creates software platforms for use in the medical industry, challenged the state’s assessment for the tax periods ending in June of 2016 and 2017. The state found Cervey improperly used the formula applicable to manufacturers to compute the apportionment of its taxable capital.

The Louisiana Board of Tax Appeals disagreed with the state in an opinion posted Wednesday, finding that software provided over the internet is tangible personal property, and Cervey manufactures it by ...