The Maryland Court of Special Appeals affirmed the tax court’s decision that a Macy’s captive insurance company is exempt from Maryland corporate income taxes on interest payments received from a Macy’s affiliate. Maryland imposes a premium receipts tax on unauthorized insurance companies, which includes the taxpayer captive insurer in this case. The taxpayer captive insurer
City and County of Denver move to exempt new statewide delivery fee from sales tax
On July 1, 2022, a statewide 27 cent per sale delivery fee took effect in Colorado. The fee applies to retailers or marketplace facilitators that collect sales or use tax on the sale of tangible personal property that is sold and delivered (including delivery performed by a third party) to a purchaser in Colorado. The
Pennsylvania codifies economic nexus standard
Pennsylvania recently codified the state’s corporate income tax economic nexus threshold, making corporations with no physical presence in Pennsylvania responsible for corporate income tax if they have sales of $500,000 or more per year sourced to Pennsylvania for tax years beginning after December 31, 2022. The legislation also includes a non-exhaustive list of other nexus
Tennessee Department of Revenue rules marketplace facilitator fees nontaxable
In Letter Ruling 22-02 (publicly released last week), the Tennessee Department of Revenue ruled that fees a marketplace facilitator charges for connecting buyers and sellers and processing payments are not subject to sales tax. The taxpayer in the ruling was a “delivery network company” under Tennessee law. It connects third-party sellers of tangible personal property
Texas Comptroller rules online learning courses are nontaxable while teacher planning services are taxable data processing
The Texas Comptroller published a private letter ruling concluding that subscriptions to online learning courses for academic subjects, professional topics, and vocational topics are not taxable. However, a company’s subscriptions for the “teacher plan,” which provides teachers lesson plans and other capabilities to integrate into their classrooms, are taxable as data processing. None of the
Washington issues interim statement regarding the taxability of NFTs
The Washington Department of Revenue issued an Interim Guidance Statement on the taxability of non-fungible tokens (NFTs). The guidance provides that the purchase of a standalone NFT is generally subject to sales tax as the sale of a digital product, and the seller of the NFT is also subject to the business and occupation (B&O)
Texas Comptroller rules cloud-based online platform educational services not subject to sales tax
The Texas Comptroller recently published a private letter ruling (issued on June 10, 2022) concluding that access to a cloud-based online platform used by healthcare students while attending courses at accredited universities and colleges was not subject to sales tax. The platform was accessed exclusively via the Internet, and the students did not download any
Washington provides sales tax exemption for urban data centers
The Washington Department of Revenue released a notice providing that effective June 9, 2022, qualifying businesses and tenants may apply for a sales and use tax exemption for purchases of server equipment and infrastructure for computer data centers located in urban areas pursuant to 2022 House Bill 1846. Eligible urban areas are those counties
Indiana updates sales tax guidance for marketplace facilitators
The Indiana Department of Revenue modified Sales Tax Bulletin No. 89 to reflect the recent change (SB 382) clarifying that a marketplace facilitator is required to collect sales tax for each retail transaction it facilitates regardless as to whether the marketplace facilitator has a contractual relationship with the seller as long as the
Out-of-state travel business subject to tax
The Wisconsin Tax Appeals Commission ruled that an out-of-state travel agent that used independent travel consultants in Wisconsin was doing business in Wisconsin and is responsible for the Wisconsin franchise tax. The company argued, among other things, that it was in the business of selling SaaS that did not produce income taxable in Wisconsin; however,