Digital Economy

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Missouri is set to enact economic nexus requirements, asserting a sales and use tax collection obligation on remote sellers and marketplace facilitators. On May 14, 2021, the Missouri Legislature passed S.B. 153, which the governor is widely expected to sign. Upon signing, Missouri will join the other 44 states and the District of Columbia…

In Travelocity.com LP v. Comptroller of Maryland, filed April 30, 2021, the Maryland Court of Appeals held that the taxpayer did not qualify as a “vendor” for purposes of sales and use tax for years prior to a 2015 law change. The taxpayer was an online travel company that provided a platform to review…

The Washington Department of Revenue issued Excise Tax Advisory 3107.2021 on May 3, 2021 stating that credit bureau services transferred electronically are subject to retail sales tax and B&O tax. By statute, taxable retail sale includes “credit bureau services” and the sale of “digital goods” and “digital automated services.” Credit bureau services include the assembly…

The Revenue Legal Counsel division of the Arkansas Department of Finance and Administration published a Revenue Legal Opinion on May 6, 2021 (dated March 25, 2021) determining that cloud-based software that allows customers to monitor and prioritize the usage of internet bandwidth is not taxable. The taxpayer sells a cloud-based service (Saas) that customers purchase…

On April 26, 2021, the California Assembly voted to approve AB 1402, which in addition to sales tax would extend the requirements of a marketplace facilitator law to fees administered pursuant to the California Fee Collection Procedures Law that are imposed on the retail sale of tangible personal property in the state. The bill…

On April 22, 2021, the Connecticut General Assembly’s Joint Committee on Finance Revenue and Bonding (“Joint Committee”) approved a revised revenue bill (HB6443) to implement the Connecticut state budget.  We have learned that the revised bill includes: (1) a new digital advertising services tax; and (2) a new wage compensation tax, whereby, at…

The Virginia Tax Commissioner issued a determination addressing use tax on the purchase of a software. Virginia statute provides an exemption for services not involving the exchange of tangible personal property, which provide access to or use of the internet and any other related electronic communication services including software, data, content and other information services…

On April 16, 2021, Governor Laura Kelly vetoed S.B. 50, which would require sales and use tax collection by marketplace facilitators and would set a remote seller tax collection threshold. Marketplace facilitators would be required to collect and remit these taxes if, during the current or immediately preceding calendar year: (1) the marketplace facilitator…

On April 14, 2021, the Connecticut General Assembly’s Joint Committee on Finance Revenue and Bonding introduced SB1106. The bill would establish the “Connecticut Equitable Investment Fund,” which would be funded by, among other things: (1) a new digital advertising services tax; and (2) a new wage compensation tax, whereby, at an employee’s or independent…