Article by B&I Attorneys on Taxability of AI Featured on Cover of Tax Notes State

The May 11, 2020, cover feature in Tax Notes State is an article by managing partner Martin Eisenstein and attorneys Michael Carey, and Jamie Szal called, “Alexa, Is AI Taxable?” They address the issues practitioners face when advising clients on the sales tax treatment of technology products and services that incorporate AI. As yet, no state or local jurisdiction taxes AI as such, but the characterization of these products and services may fit them into more traditional tax categories including information services, software as a service, data processing, consulting, and custom software development. The authors discuss how tax jurisdictions may deal with the taxation of products and services in this rapidly growing area.