The Louisiana House sent HB 64 to the Senate for consideration. The bill would impose an 8% tax on the net revenue of fantasy sports contests. Louisiana has until its special session ends on June 30 to pass the bill, which would take effect immediately.
Digital Economy
Texas Delays Effective Date of Tax Sourcing Rule
By Jonathan Feldman on
Posted in Digital Economy
The Texas Comptroller has delayed until October 2021 the effective date of a new regulation that affects where local sales tax is allocated. The rule, which amends 34 TAC § 3.334, is meant to reduce the portion of sales tax revenue received by localities that host online retailer’s order-processing centers. The current rule generally provides…
Rhode Island passes SSUTA legislation
By Jonathan Feldman on
Posted in Digital Economy
On June 18, Rhode Island’s legislature passed H 7532, which expands the state’s tax base to computer software and streaming entertainment to comply with the Streamlined Sales & Use Tax Agreement. The bill expands the definition of a taxable sale to include any license, lease, or rental of prewritten or vendor-hosted computer software…
Ohio and Texas Issue Guidance on Expiration of Internet Tax Freedom Act Grandfather Clause
By Charles Capouet & Todd Lard on
Posted in Digital Economy, In the News
On June 30th, 2020, the Internet Tax Freedom Act’s grandfather clause will expire. ITFA prohibits states and political subdivisions from imposing taxes on Internet access. But the grandfather clause has permitted such taxes if they were generally imposed and actually enforced prior to October 1, 1998. In particular, Ohio and Texas have imposed their sales…
Chicago Suburb Proposes Expansion of Amusement Tax to Streaming
By Jonathan Feldman on
Posted in Digital Economy
The Evanston City Council voted on May 26, 2020 to introduce an ordinance that would extend its 5% amusement tax to reach online gaming and streaming. The Council stated that the increase is a reaction to a projected decrease in tax revenue from in-person amusement events. Given the “rise in popularity of streaming amusements, staff…
North Carolina Excludes Sales of Certain Digital Goods from Sales and Use Taxes
By Jonathan Feldman on
Posted in Digital Economy
On June 5, 2020, Governor Cooper signed HB 1079, which will exclude sales of certain digital audio and visual works from the state’s sales and use tax, and make other tax changes. The law exempts sales of digital educational services and the sales of digital audio or digital audiovisual works that consist of nontaxable…
Colorado Proposes a Series of Regulations to Address Digital Taxation
By Jonathan Feldman on
Posted in Digital Economy
The Colorado Department of Revenue has proposed several regulations related to taxation of digital goods, remote sales, and marketplace collection. First, it proposed a “doing-business” rule, which clarifies a person maintains a business in Colorado if the person meets the economic nexus test of $100,000 annual retail sales in Colorado. It also proposed another…
Kansas Again Fails to Pass Remote-Seller and Marketplace Facilitator Bill
By Jonathan Feldman on
Posted in Digital Economy, Marketplace
Kansas lawmakers did not take their second bite at the remote-seller and marketplace-facilitator apple during a special legislative session. On June 3, 2020, Representative Steven Johnson re-introduced HB 2014, which would have required remote sellers with $100,000 or more in annual in-state sales to collect and remit taxes and would have required marketplace facilitators…
Washington Warns Taxpayers Not to Rely on Current Remote Seller Regulations
By Jonathan Feldman on
Posted in Digital Economy
Washington has required remote sellers meeting the $100,000 annual revenue of 200 annual transaction threshold to collect and remit sales tax since October 1, 2018. The requirement was first introduced by regulation and later confirmed and clarified by statute. In a May 22 emergency regulation, the Washington Department of Revenue warned taxpayers not to…
North Carolina Legislature Approves Sales and Use Tax Exclusion for Digital Educational Services
By Jonathan Feldman on
Posted in Digital Economy
North Carolina HB 1079, providing a variety of sales tax changes, has been approved by both houses of the legislature and now awaits the Governor’s signature. In particular, the bill would exclude from sales and use tax sales of digital educational services and would exempt: (1) sales to home school operators of digital audio…