Companion bills recently introduced in New York State (A. 11180 and S. 9112) would impose a temporary tax on businesses that provide broadband internet access service. Revenues generated from the tax would be earmarked to fund the provision of broadband internet access services to students in the state during the COVID-19 pandemic.
In the News
Texas releases guidance on sales tax for online orders
The Texas Comptroller of Public Accounts recently released guidance explaining the application of Texas sales and use tax to online sales. In particular, online buyers must pay sales and use tax on taxable items delivered or brought into Texas. Remote sellers required to collect tax can do so based on either the shipping destination rate…
California’s Three-Member Franchise Tax Board to Consider Proposed Market-Based Sourcing and Alternative Apportionment Regulations at December Meeting
By Nikki Dobay, Timothy Gustafson & Annie Rothschild on
On December 18th, the three-member Board of the Franchise Tax Board (FTB) will hold its final quarterly meeting of 2020. At the meeting, the Board will consider the 2021 Rulemaking Calendar. The Calendar contains the agency’s schedules for its administrative rulemaking processes on various regulation projects. Two significant corporate franchise tax regulation projects on…
Tennessee clarifies applicability of marketplace facilitator rules to other taxes
On December 1, 2020, the Tennessee Department of Revenue announced that the filing and threshold requirements for marketplace facilitators and sellers established in Senate Bill No. 2932 – effective October 1, 2020 – do not apply for purposes of the business tax or franchise and excise tax. Rather, the bill’s nexus requirements apply to only…
Washington considers digital advertising tax
Posted in In the News
Washington lawmakers may soon begin debate on a digital advertising tax, prompted by a draft copy of a yet-to-be-filed bill. Washington currently applies its business and occupation tax to digital advertising services under the service and other activities classification (1.5%). This bill would instead subject digital advertising services to the business and occupation tax…
Wisconsin DOR issues guidance on remote learning materials
Posted in In the News
The Wisconsin Department of Revenue has published a guidance document on the taxation of traditional and remote learning materials. Live in-person and digital online educational services are generally a non-taxable educational service. The guidance provides that the sale of a pre-recorded webinar is generally taxable as the sale of personal property, although it may be…
Sensing a Trend? Maine Tax Assessor Argues Sales Tax “Sale Price” of iPhones More Than What They Sold For
Posted in In the News
After losing at trial, the Maine State Tax Assessor is now arguing to the state’s Supreme Judicial Court that sales tax applies to carrier subsidies received by Apple on its sales of iPhones bundled with service contracts. During the years in issue, Apple sold iPhones to its customers at a reduced price when the customers…
The Comity Club: Federal Judge Remands Indiana Franchise Fee Case Back to State Court
Posted in In the News
Citing to principles of comity, a federal district court remanded back to state court a class action suit brought by Indiana municipalities seeking franchise fees from various streaming video companies.
The Indiana municipalities filed a class action lawsuit against the streaming video companies in state court, asserting that the companies were obligated to pay franchise…
Washington DOR publishes draft rules on marketplace facilitator obligations
Posted in In the News
The Washington Department of Revenue has published a draft “pre-proposal” for regulations on the state’s 2019 marketplace facilitator law. The draft guidance includes: definitions of key legislative terms; a summary of who is and isn’t a marketplace facilitator, a requirement for marketplace facilitators to collect other retail taxes such as car rental taxes,…
Legal Alert: MTC Executive Committee Fall Meeting Update—SITAS Committee Regroups and Amended P.L. 86-272 Statement Moves Forward
Posted in In the News, Legal Alert
On November 20, the Executive Committee of the Multistate Tax Commission (MTC) met via videoconference for its final meeting of 2020. During the meeting, the Committee heard updates from Greg Matson (MTC Executive Director) and each of the MTC’s standing committees, including the State Intercompany Transactions Advisory Service (SITAS) Committee. Here are the highlights.
Krystal…