[yourapostasy]

What if you are a SquareUp.com and you send hardware to your customers that enables the out-of-state hosted service? Even if the hardware was free to the customer, as I read the new law in the context of real property that establishes nexus, simply having hardware in the state establishes nexus.

[dragonwriter]

Square readers are tangible personal property, not real property; and they are tangible personal property o the customer once they are sent out, not of SquareUp. So, they have zero relevance to a rule that would make real property owned by SquareUp a nexus in the state, as they are neither real property nor owned by SquareUp.

[yourapostasy]

Good point, that was a poor example I chose. This tax will hit service-delivered-as-an-appliance plays out there, if I am reading it right. Unless they give away the appliance server.

[Dylan16807]

'real' means land* And improvements to land, like buildings. I'm curious if you thought it was an extraneous word, or what you thought the alternative to 'real' property would be.

*except in Louisiana, where they use French terminology for everything and you have immovable/movable property rather than real/personal

[yourapostasy]

Ah, I should have used tangible property, as that is also used in nexus determination, and more relevant to the tech space.