Shaking things up in state and local tax
Shaking things up in state and local tax
A pair of recently-introduced Maryland bills would create a whistleblower program within the Maryland Comptroller’s office and possibly result in a headache for many taxpayers. The proposed whistleblower bills appear to be modeled after the IRS’ whistleblower program, although they contain a noticeably low materiality threshold and allow for the anonymous reporting of complaints.
The…
The North Carolina Department of Revenue released a private letter ruling, concluding that a web-based product used to handle administration, management, and record-keeping via a Software as a Service model was not subject to sales and use tax. Consumers accessed the software application, which was running on a cloud-based infrastructure. The ruling states: “North…
In this episode of the SALT Shaker Podcast policy series, we discuss all things Maryland digital advertising tax. Talk about drama! We have a brand new tax, vetoes, veto overrides and litigation. State tax policy doesn’t get more exciting than this! Host and Eversheds Sutherland Partner Nikki Dobay of the Sacramento office is joined by…
A recently-introduced bill in the West Virginia Senate would impose a new tax on companies that provide digital advertising services. SB 605, introduced on March 9 by Senator Rupie Phillips (R-Logan 07), would impose a gross receipts tax on the annual gross revenues of a taxpayer derived from digital advertising services in the state.…
The South Dakota Department of Revenue issued updated guidance regarding the application of sales tax to sales of Internet access and internet-related services. In particular, the Department added “Internet e-mail services” and “web hosting” to the list of exempt Internet-related services. However, the Department removed “live chat or conferencing fees” from the list. The Department…
Earlier today, the Maryland Senate passed S.B. 787, Digital Advertising Gross Revenues Tax and Tobacco Tax – Alterations and Implementation, on third reading (46-0). As amended, S.B. 787 makes the following relevant changes to the digital advertising tax:
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On February 22, 2021, the Georgia House of Representatives introduced H.B. 594, which would impose the Georgia sales tax on digital goods or services. The bill amends the definition of tangible personal property, subject to sales tax, to include “digital goods or services.” It defines digital goods or services to include: (1) specified digital…
On February 19, 2021, the New York Senate introduced S4959, which would impose a monthly excise tax on the collection of the consumer data of individual New York consumers by commercial data collectors. The tax rate varies based on the number of New York consumers the commercial data collector collects data on within the…
The Massachusetts Legislature has recently introduced a variety of bills that would tax digital advertising. Notably, HD.3210 would establish the Digital Advertising Local Revenues Tax, which would be imposed on the annual gross revenues of a person derived from digital advertising services in Massachusetts. “Digital advertising services” is defined as including “advertisement services on…
Alabama considers the sale of prepaid telephone calling cards and the sale of prepaid authorization numbers not evidenced by a physical card, to be the sale of tangible personal property subject to sales tax. Specifically, Alabama statute considers the “sale of prepaid wireless service that is not evidenced by a physical card” to constitute the…
