Are charges for Web-based software applications taxable?
Charges by an Application Service Provider (ASP) for services that allow customers remote access to software applications via the Internet or other electronic connection are not taxable when the ASP retains title to the software. The location of the software, whether located on a server in Nebraska or on a server outside the state, does not affect this determination. The ASP is, however, responsible for paying sales or use tax on its purchases of software which reside on a server located in Nebraska.
