Smitha Chintamaneni

A recent Rhode Island Administrative Hearing Decision addressed whether an online database that incorporates searchable research is taxable as vendor-hosted prewritten computer software. [R.I. Div. of Tax'n, Administrative Hearing Decision No....

Not surprisingly, state Department of Revenues are finally addressing the taxability of Artificial Intelligence (AI) components. The Kentucky Department of Revenue recently issued guidance in its Winter 2025/2026 Sales Tax Facts publication stating that sales and use tax applies to “prewritten computer software” and “prewritten computer software access services”, even if they have AI components. Kentucky taxes prewritten computer software as tangible personal property.

Over the course of a few weeks, the Ohio Supreme Court has released a pair of decisions that offer guidance on how to determine the situs of gross receipts for purposes of calculating the Commercial Activity Tax (CAT) as well as the standard a taxpayer must meet when requesting a refund. VVF Intervest, LLC v. Harris, Slip Opinion No. 2025-Ohio-5680 (Dec. 24, 2025) and Jones Apparel Group/Nine West Holdings v. Harris, Slip Opinion No. 2026-Ohio-74 (Jan. 14, 2026).