Shaking things up in state and local tax
Shaking things up in state and local tax
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By Evan Hamme and Timothy Gustafson
The Colorado Department of Revenue issued guidance to a taxpayer operating a colocation and hosting facility, which provided customers a place to securely store computer servers, on whether certain charges imposed by the taxpayer were subject to sales and use tax. Specifically, the taxpayer requested guidance on the applicability…
By Mary Alexander and Charlie Kearns
The Missouri Department of Revenue determined in a letter ruling that Bitcoins are intangible property not subject to tax under Missouri’s Sales and Use Tax Law. As explained by the taxpayer, Bitcoins are “a form of digital currency that is created by software and stored electronically.” Here, the taxpayer…
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By Stephanie Do and Andrew Appleby
The Massachusetts Department of Revenue addressed the possible expiration and subsequent retroactive enactment of the federal Internet Tax Freedom Act (ITFA). The Department advised Internet Service Providers (ISPs) to continue to rely on Technical Information Release (TIR) No. 05-8 (July 14, 2005), until further notice, to determine the taxability…
By Derek Takehara and Andrew Appleby
The Minnesota Supreme Court upheld the Minnesota Department of Revenue’s imposition of sales tax on a software company’s sale of partially customized software because the taxpayer failed to separately state customization charges on customer invoices. The taxpayer licensed software that analyzed information on retailers’ cash registers. The taxpayer always…
By Suzanne Palms and Pilar Mata
The Washington Department of Revenue determined that taxpayers have a right to rely on written but not oral instructions from the Department of Revenue. The taxpayer operated an Internet marketing business and sold its services to customers both inside and outside the state. In June 2011, the taxpayer amended…
By Jessica Kerner and Timothy Gustafson
The New York Department of Taxation and Finance advised a website operator, through which restaurants offer meals for sale, that it was not subject to sales tax on the fees it charged to the restaurants for services provided. The website allows approximately 5,000 restaurants in more than 27 cities…
By Stephen Burroughs and Prentiss Willson
Indiana’s Department Revenue determined that the sale of prepaid phone cards and prepaid cell phones are “telecommunication services” subject to Indiana’s Utility Receipts Tax (URT). The URT is an income tax imposed upon the receipts a taxpayer receives from the sale of utility services. Included within utility services are…
By Ted Friedman and Timothy Gustafson
The New York State Department of Taxation and Finance issued a Tax Bulletin addressing the application of sales tax to sales of computer software and related services. The Department explained that the sale of prewritten software is taxable, while the sale of custom software is not subject to tax.
