The Alabama Supreme Court recently issued an opinion providing guidance on how computer software and related services are taxed by the State of Alabama for sales tax purposes. This is the first such opinion in this area by the Alabama Supreme Court in over 20 years.
In Ex Parte Russell County Community Hospital, LLC, Medhost of Tennessee, Inc. (“Medhost”) sold Russell County Community Hospital (“Hospital”) computer software and the accompanying hardware/equipment, and which Medhost later installed. In its invoice to the Hospital, Medhost did not itemize the software and ...