Shaking things up in state and local tax
Shaking things up in state and local tax
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Following on Maryland’s heels, there are currently five separate digital advertising tax measures pending before the Massachusetts legislature. H. 2894 would impose a 5% tax on the annual digital advertising revenue from companies generating more than $25 million in digital advertising sales in Massachusetts. H. 2928 would not impose a tax directly, but would create…
The New York Tax Appeals Tribunal mostly affirmed the New York Division of Tax Appeals determination that a company’s provision of advertising measurement services was a taxable information service. The taxpayer provides services to its clients that measure advertising effectiveness. New York taxes the provision of information services, but exempts information services that are personal…
The Missouri Department of Revenue released a private letter ruling issued in December 2021 determining that a company’s private wireless network was not subject to Missouri sales tax. The company provides wireless services in Missouri, including voice, messaging, Internet access and private network services. The private network services provide machine-to-machine data transmission, which is segregated…
The Minnesota Department of Revenue has released updated guidance regarding the state’s requirement that out-of-state marketplace providers collect and remit Minnesota sales tax if their total sales (including facilitated sales) over the prior 12-month period total either 200 or more retail sales shipped to Minnesota, or more than $100,000 in retail sales shipped to Minnesota.…
The Massachusetts Appellate Tax Board found that software-as-a-service (SaaS) provider Akamai Technologies Inc. was a manufacturing corporation, rather than a service provider. Akamai, headquartered in Massachusetts, provided software-based cloud services allowing customers to manage the delivery of web and media content over the Internet. In Massachusetts, a manufacturing corporation must use single sales factor apportionment,…
An Alabama legislator has re-introduced a bill that would expressly exempt “virtual currency” from ad valorem tax. Alabama broadly imposes its ad valorem tax on all property, unless expressly exempt. Under current law, several other forms of currency are enumerated as exempt, such as “money on deposit in any bank or banking institution and all…
The New York Division of Tax Appeals determined that a multilevel marketing company’s provision of access to its web-based software that contains confidential and proprietary information and reports for use in developing business was neither the taxable sale of prewritten computer software, nor the sale of a taxable information service. The company, a multilevel marketing…
The Indiana Department of Revenue issued a protest ruling that an auto parts manufacturer was entitled to a refund on certain software service purchases for the 2017, 2018, and 2019 years. The taxpayer licensed software through a remote platform into which taxpayer loaded its own data for education services, cloud services, and manufacturing support services.…
