The sales of genealogical and health history reports are now considered taxable in Rhode Island.  The ruling states that when customers view their reports online, this counts as using computer software. It also claims that without this software, companies couldn’t provide customers with their ancestry and health information.

The bottom line: Rhode Island has decided many digital services count as vendor-hosted software for tax purposes, even when they’re mainly for research, analysis, or reporting. Companies offering digital reports, research services, or online subscriptions should review how this ruling affects their taxes.