Digital Economy

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On April 12, 2022, the Administrative Review and Hearings Division of the Washington Department of Revenue released decision number 41 WTD 118 (originally issued on June 4, 2020), concluding that a company providing online account access services to credit unions was providing taxable digital automated services (DAS) and not data processing services which is excluded…

Virginia’s Governor signed H.B. 1155, which expands the sales tax exemption for amplification, transmission and distribution equipment to now include “network equipment” that is used to provide Internet service. The expanded exemption defines a “network” to include modems, fiber optic cables, coaxial cables, radio equipment, routing equipment, switching equipment, a cable modem termination system,…

The Comptroller has informed us that the due date for the first quarterly estimated digital advertising tax payment is extended to Monday, April 18th. The deadline for taxpayers to make this first payment would otherwise have been April 15, 2022. We are not aware of the Maryland Comptroller’s office otherwise publicizing this extension. Taxpayers…

On April 4, 2022, the Colorado House of Representatives unanimously approved S.B. 32, a measure simplifying local sales and use tax reporting by prohibiting Colorado’s approximately 70 home-rule cities from requiring remote sellers to obtain local business licenses as long as the retailer has a state standard retail license. Beginning on July 1, 2022,…

The Massachusetts Appellate Tax Board ruled that a company that develops and sells software-as-a-Service (SaaS) is allowed a property tax exemption for the machinery it uses in its development process. The Appellate Tax Board previously ruled that the company was a manufacturing corporation, and thus was entitled to use single sales factor apportionment provided to…

On March 28, 2022, Mississippi’s governor signed S.B. 2831, creating the Taxation of Remote and Internet-based Computer Software Products and Services Study Committee, which is tasked with examining the taxation of remote and internet-based computer software products and services in Mississippi. By October 1, 2022, the Committee must report to the legislature its findings…

On March 23, 2022, the Mississippi Supreme Court issued an order granting review of a trial court determination that sales of digital photographs are not subject to sales tax. The trial court struck down an assessment against a wedding photographer, concluding that taxable “tangible personal property” did not include digital photographs and photography is not…

The New Jersey Division of Taxation recently updated Technical Advice Memorandum 2015-1(R), first issued in 2015, regarding the tax treatment of transactions involving convertible virtual currency, such as Bitcoin. The updated TAM states that the state conforms to the federal treatment of convertible virtual currency for Corporation Income Tax and Gross Income Tax purposes.…

On March 15, 2022, the Ohio Supreme Court determined that the Ohio Board of Tax Appeals (BTA) must apply the true object test when determining whether a bank purchased nontaxable custom software or taxable services. The taxpayer was a bank that purchased computerized services which allowed the bank to run transactions on a daily basis…