Digital Economy

Subscribe to Digital Economy via RSS

Maryland is one step closer to enacting the nation’s first digital advertising tax. This afternoon, the Maryland House of Delegates voted 88-48 to override Governor Larry Hogan’s veto of House Bill 732, which would create an entirely new gross revenues tax on digital advertising services – display ads, search engine ads, mobile application…

In February 2021, the Illinois Department of Revenue issued a Compliance Alert on the tax remittance obligations of remote retailers, marketplace sellers, and marketplace facilitators. It concluded that remote retailers and marketplace facilitators must collect and remit state and local retailers’ occupation taxes (ROT) administered by the Illinois Department of Revenue – including the Chicago…

A digital advertising tax proposal (LC 3237) has been drafted in Montana at the request of a Republican legislator. The bill, currently in draft form, would impose a new 10 percent tax on the annual gross revenues derived from digital advertising services in Montana on each person with worldwide annual gross revenue from…

The Massachusetts Appellate Tax Board (ATB) granted summary judgement for taxpayer U.S. Auto Parts Network, Inc. (U.S. Auto Parts), abating the Department of Revenue’s sales and use tax assessment based on a finding that the online auto parts seller had acquired “cookie nexus” with the state. The Department’s economic nexus regulation, the “Internet Vendor Rule,”…

On January 29, Connecticut Rep. Josh Elliot, D-Hamden, and twenty-four other co-sponsors filed proposed HB 6187, which proposes to establish a 10 percent tax on the annual gross revenues derived from digital advertising services in the state for any business with annual worldwide gross revenues exceeding $10 billion. The proposed bill calls for…

On January 19, 2021, House Bill 1303 was filed, which would amend the Business and Occupation Tax to impose a tax of 1.8% on gross income of a business engaged in selling or exchanging personal data within Washington. The bill defines “personal data” to include any information that is linked or reasonably linked to an…

A “proposed bill” introduced in the Connecticut General Assembly (No. 5645) proposes the establishment of a tax on “social media provider companies,” which would be measured by “apportioned annual gross revenue derived from social media advertising services” in Connecticut. The proposed bill calls for the revenue from such tax to be partially dedicated…

The New York State Department of Taxation and Finance issued an advisory opinion concluding that a taxpayer’s e-mail and consulting services are not subject to New York sales tax. The service allows customers to remotely send e-mails using its platform. The Department concluded that it was an e-mail service not taxable as “Internet access” under…

The Iowa Department of Revenue issued a bulletin explaining its sales tax exemption for purchases of computers, along with the recently-enacted exemption for purchases of computer peripherals. The exemption applies to computers and computer peripherals used in processing or storage of data or information by an insurance company, financial institution, or commercial enterprise. The guidance…

On January 13, 2021, the governor of Kansas released her budget report for fiscal year 2022, which would require marketplace facilitators to begin collecting retail sales and compensating use taxes on sales to Kansas customers on July 1, 2021. The budget also contains a proposal to impose sales tax on all sales of digital property…