[May 20, 2019] The Alabama Supreme Court recently issued a decision in Russell County Community Hospital v. State Department of Revenue holding that all software is tangible personal property and thus subject to sales tax. A number of justices concurred with respect to the result but not the reasoning of the decision and it is not clear whether a majority of justices held that there is no taxability distinction between canned and custom software. Sovos is actively seeking guidance from the Alabama Department of Revenue to determine if codes related to sales of custom software are now properly taxable in Alabama.
To see the published decision click here.
