Digital Economy

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On June 30, 2021, Delaware’s Governor signed into law Senate Bill 103, which adds “virtual currency” to the definition of “property” subject to the reporting and remitting requirements of Delaware’s unclaimed property law. “Virtual currency” is “a digital representation of value, including cryptocurrency, used as a medium of exchange, a unit of account, or…

Louisiana codified an individual income tax exemption for “digital nomads.” SB 31 (Effective Jan. 1, 2022). “Digital nomads” are defined as individuals who establish residency in Louisiana after December 31, 2021, have health coverage, and work remotely, full-time for a nonresident business. The exemption applies to 50% of the digital nomad’s gross wages, not to…

On June 23, 2021, Colorado’s Governor signed legislation adding “digital goods” to the statutory definition of “tangible personal property” subject to sales and use tax. HB 21-1312 (Effective July 1, 2021). The bill states that it interprets the definition of “digital goods” consistent with “the department of revenue’s long-standing treatment of digital goods, as reflected…

In an effort to curb the Texas Comptroller’s recent expansion of the tax imposed on data processing services, the Texas legislature has specifically excluded payment processing services from sales and use tax. Texas taxes data processing services, which includes “word processing, data entry, data retrieval, data search, information compilation, payroll and business accounting data production…

On June 17, 2021, the Standing Subcommittee of the Multistate Tax Commission’s (“MTC”) Uniformity Committee discussed a potential new project recommendation for the Uniformity Committee. During the meeting, MTC staff presented a draft memo outlining the pros and cons of creating a uniform model statute for the taxation of digital products. Ultimately, however, the Committee…

The Illinois Department of Revenue Issued letter ruling ST 21-0001, addressing the retailer’s occupation tax and use tax treatment of a company’s fleet management service. The company provided a web-based management service for the administration, management, and record-keeping of motor vehicle fleets. The company used a Software as a Service (SaaS) model that allows…

The Department of Taxation and Finance recently issued advisory opinion numbered TSB-A-20(63)S (dated November 17, 2020) in which it concluded that the primary purpose of a marketing-consulting service was a nontaxable service, even though the taxpayer’s customers had access to software. The taxpayer assists automotive industry clients in designing and launching effective marketing campaigns and…

On June 3, 2021, the Maryland Comptroller of Treasury issued a revised version of Business Tax Tip #29, which clarifies the Comptroller’s interpretation of its sales and use tax on “digital products,” including software. With particular attention given to recently-effective amendments by S.B. 787, the revised version explains the Comptroller’s interpretation and application…

On May 24, 2021, the North Carolina Department of Revenue published Private Letter Ruling No. SUPLR 2021-0019 (dated April 29, 2021). The taxpayer is a North Carolina based company that provides subscriptions to information hosted in the cloud which its customers access through a web portal in exchange for a subscription fee. The industry-specific information…

On May 7, 2021, the Washington Department of Revenue issued Excise Tax Advisory 3223.2021, providing guidance on the proper taxation of grocery food and restaurant delivery services provided through marketplace facilitators. Marketplace facilitators that are facilitating the retail sale of prepared food or groceries through its marketplace are responsible for collecting and remitting sales…