S.B. 1174, a bill seeking to simplify and reform the Florida communications services tax, has advanced in committee. The bill would expand the definition of taxable “video services” to expressly include streaming services where access to content expires at a specific time or on the occurrence of a condition subsequent. Per the legislative analysis
New to the Market: Georgia Enacts Marketplace Facilitator Bill
On January 30, 2020, Governor Kemp signed Georgia’s marketplace facilitator bill, H.B. 276, into law. Effective April 1, 2020, the law will require marketplace facilitators to collect and remit sales and use tax on behalf of marketplace sellers. It will apply to marketplace facilitators with sales in excess of $100,000 in the state.
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The 2020 State Legislative Trend to Watch – Advertising and Data Taxes
Over 40 state legislatures have convened their 2020 legislative sessions. Last year, states moved quickly to impose collection and remittance obligations on remote sellers and marketplace facilitators in light of Wayfair. This year, states are charting a new course – proposing legislation to expand sales taxes to include advertising services or proposing entirely new taxes
Colorado Department of Revenue to Hold Stakeholder Work Group on Draft Digital Goods Sales Tax Rule
The Colorado Department of Revenue will hold a stakeholder work group to discuss a draft sales tax rule that will “clarify the Department’s treatment of digital goods as tangible personal property.” In advance of the meeting, the Department has prepared a draft rule. Interested parties can attend the work group meeting on March 4,
Marketplace Monday: Michigan Legislature Approves Marketplace Collection Law
As we near the end of 2019, Michigan appears to be closing in on being the 39th state to pass a state tax marketplace collection law. The legislation passed a Republican-led Senate unanimously last week, and it is headed to the Governor who is expected to sign the bill.
In addition to marketplace collection requirements,
Legal Alert: Maryland bill proposes digital goods tax
The Maryland House of Delegates is considering legislation (House Bill 426) that would impose sales and use tax on digital products and sales tax on digital codes. If signed into law, Maryland would begin taxing digital products and digital codes on July 1, 2019. House Bill 426 was read for the first time in the
Legal Alert: Overlooked opportunities? State tax considerations relating to investments in federal qualified opportunity zones
The federal Tax Cuts and Jobs Act (TCJA) created a new economic development program designed to spur investment in certain low-income communities designated as “Opportunity Zones.” The new federal tax provisions offer significant opportunities to defer, and in some instances permanently reduce, gains that are invested in Opportunity Zones, as well as to abate gains
Marketplace Providers Are Statutorily Required to Collect Sales Tax in Minnesota and Washington
By Jeff Friedman and Stephanie Do
A new landmark sales tax statute has been adopted in Minnesota, which expands sales tax collection requirements to those retailers that sell their goods on certain “marketplaces.” Generally, only a retailer that is physically present in a state is required to collect and remit the state’s sales tax. The
Arizona DOR Determines That Taxpayer’s Software Services Are Not Subject to Transaction Privilege Tax
By Open Weaver Banks and Liz Cha
The Arizona Department of Revenue (Department) issued a taxpayer information ruling stating that a taxpayer’s gross income from transactions provided through the use of computer software is not subject to tax under the personal property rental classification for Arizona Transaction Privilege Tax purposes.
The taxpayer’s software provides its
It’s Not So Electric: Telecommunications Provider’s NYS Electricity Purchases Not Exempt Sales for Resale
By Nicole Boutros and Scott Wright
A New York State Division of Tax Appeals administrative law judge (ALJ) determined that a telecommunications provider’s electricity purchases were not exempt from sales tax as sales for resale. In so doing, the ALJ rejected the taxpayer’s assertion that it resold electricity by incorporating it into its telecommunications services