According to a recent article, "The Indiana Department of Revenue found that a medical research company that purchased software licenses was entitled to an exemption from use tax for purchases of taxable computer software as long as it could show the licenses were ultimately used outside of Indiana. The Department added that an exemption is not permitted where a company shows that its licenses were not used in Indiana but fails to show that they were used elsewhere ('nowhere licenses')."
The article continued that "the taxpayer’s 'nowhere licenses' were not exempt from use tax based on the temporary storage exemption, because the taxpayer could not show that they were subsequently used out of state. For use tax purposes, the 'nowhere licenses' were effectively used in Indiana because the taxpayer purchased them and accepted delivery in Indiana, even though it did not actually employ the licenses."
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