An act relating to imposing sales and use tax on vendor-hosted prewritten computer software

This bill would remove the current sales tax exemption for prewritten computer software accessed remotely in Vermont, requiring businesses and consumers to pay a six percent sales tax on such software. The legislation defines vendor-hosted software as any prewritten program accessed through the internet or a vendor's server, regardless of how it is delivered, whether access is permanent or temporary, or how it is billed. By repealing the 2015 exemption, the bill ensures that digital software subscriptions and remote access services are taxed the same as other digital products sold in the state. The changes would take effect on July 1, 2024, and apply to both sales and use tax obligations for software accessed within Vermont.