# Supreme Court Declines SaaS Tax Review

The U.S. Supreme Court declined to review whether Public Law 86-272’s state income-tax safe harbor applies to software-as-a-service businesses, leaving a Wisconsin Court of Appeals ruling and the related assessment against ASAP Cruises Inc. in place. For government buyers and contractors that sell SaaS across state lines, the decision keeps state tax exposure relevant to pricing, supplier financial planning, and evaluation of multistate business operations; it does not announce a procurement or create a new procurement requirement.

- SaaS providers and contractors operating across state lines should evaluate their state income-tax exposure in light of the Wisconsin ruling and the assessment that remains in place.
- Procurement teams can account for potential state tax costs when reviewing SaaS supplier pricing and financial assumptions; the signal does not specify a new compliance deadline or requirement.
- The extracted locations include Wisconsin and Florida, but the signal does not explain Florida’s connection to the dispute.

**Jurisdictions:** sled
**Industries:** Information Technology
**Topics:** Regulatory Compliance
**Published:** October 05, 2026

### Government Entities
- U.S. Supreme Court
- Wisconsin Court of Appeals