Shaking things up in state and local tax
Shaking things up in state and local tax
In what could best be described as a “tax on talking,” the DC Council will vote on a budget tomorrow that relies on revenue from expanding the sales tax to advertising services and personal information. The rate is generally 3%, but could rise to 7.25% for certain taxpayers.
The legislation quickly moved through the Council…
On June 24, the Rhode Island Governor signed into law S2650 Substitute A, which clarifies the state’s sales taxation of cloud computing and streaming digital products to comply with the Streamlined Sales & Use Tax Agreement. The bill amends the definition of a taxable sale to include any license, lease, or rental of prewritten…
The recently introduced SB 8627 would require short-term rental platforms to collect and remit sales taxes on behalf of the hosts on rental units leased outside of New York City. A similar measure was introduced last year but died in committee.
On June 30, Mississippi became the latest state to enact a marketplace facilitator law after Governor Tate Reeves signed House Bill 379, also known as the “Mississippi Marketplace Facilitator Act of 2020.” The law requires most marketplace facilitators to collect sales and use tax on behalf of marketplace sellers beginning on July 1, 2020.…
The New York State Assembly will consider AB 10706, the Digital Ad Tax Act or DATA, which would impose a sliding scale of taxes on digital advertising services that use personal information about the people the advertisements are targeting. The tax starts at 2.5% imposed on the annual gross revenues derived from digital advertising…
The Arkansas Department of Finance & Administration issued an opinion stating that the provision of certain “virtual services,” including bookkeeping, project management, business analysis, email management, research, and customer service, provided via the Internet, are not subject to Arkansas sales tax. Arkansas sales tax is imposed on the gross proceeds from all sales of tangible…
The D.C. Council is considering a new sales tax on advertising services, including digital advertising services, and personal information.
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Vermont H. 954, a collection of miscellaneous tax proposals, includes several digital taxation proposals. Vermont currently charges a 2.4% “universal service charge” on the sale of prepaid wireless telecommunication services. H. 954 would require marketplace facilitators collecting the corresponding sales tax to also collect the universal service charge beginning July 1, 2021. Additionally, H.…
Tennessee’s sales tax applies to the sale, lease or licensing of specified digital products. By revenue ruling, the Tennessee Department of Revenue explained that sales tax applies to customized on-hold messaging services, digital signage services, and overhead music services.
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.
