Indiana released Information Bulletin #89 updating guidance for remote sellers and marketplace facilitators. The guidance, which became effective July 1, implements SEA 408. It also notes, among other things, that marketplace facilitators must include both transactions made on its own behalf and transactions facilitated on behalf of their sellers when making the determination as
Digital Economy
New York Considers Requiring Rental Platforms to Collect Tax
By Jonathan Feldman on
Posted in Digital Economy, New York
The recently introduced SB 8627 would require short-term rental platforms to collect and remit sales taxes on behalf of the hosts on rental units leased outside of New York City. A similar measure was introduced last year but died in committee.
Wisconsin DOR Proposes Guidance for Marketplace Sellers and Providers
By Jonathan Feldman on
Posted in Marketplace
Wisconsin’s Department of Revenue (DOR) released two proposed guidance documents answering common questions and clarifying rules applicable to marketplace sellers and providers. The proposed Marketplace Provider Common Questions generally explains the DOR registration process and offers other clarifications; for example, it notes that facilitators can prepare a single sales tax return that includes all facilitated…
North Carolina Extends and Clarifies Sales Tax Rules
By Jonathan Feldman on
Posted in Marketplace
On June 30, the North Carolina Governor signed into law a wide-ranging tax bill that includes marketplace facilitator rules for meals taxes and clarifies sales tax for download codes. HB 1080 extends marketplace facilitator collection and remittance obligations to local meals taxes, effective July 1, 2020. In addition, the law clarifies that the sale of…
New Mississippi Marketplace Facilitator Law Leaves Food Delivery Services off the Menu
By Dennis Jansen & Open Weaver Banks on
Posted in Digital Economy, Marketplace
On June 30, Mississippi became the latest state to enact a marketplace facilitator law after Governor Tate Reeves signed House Bill 379, also known as the “Mississippi Marketplace Facilitator Act of 2020.” The law requires most marketplace facilitators to collect sales and use tax on behalf of marketplace sellers beginning on July 1, 2020.…
Tennessee Enacts Lower Remote Seller and Marketplace Sales Threshold
By Jonathan Feldman on
Posted in Marketplace
On June 30, Tennessee’s governor signed SB 2932 into law as Public Chapter 759. Effective October 1, 2020, the law requires a dealer or marketplace facilitator with no physical presence in the state and $100,000 in total sales in the state in the previous 12 months to register and collect sales and use tax. The…
New York Proposes 10% Digital Advertising Tax
By Jonathan Feldman on
Posted in Digital Economy, New York
The New York State Assembly will consider AB 10706, the Digital Ad Tax Act or DATA, which would impose a sliding scale of taxes on digital advertising services that use personal information about the people the advertisements are targeting. The tax starts at 2.5% imposed on the annual gross revenues derived from digital advertising…
Arkansas Department of Finance & Administration Issues Guidance Regarding Taxability of Virtual Services
By Elizabeth Cha & Ted Friedman on
Posted in Digital Economy
The Arkansas Department of Finance & Administration issued an opinion stating that the provision of certain “virtual services,” including bookkeeping, project management, business analysis, email management, research, and customer service, provided via the Internet, are not subject to Arkansas sales tax. Arkansas sales tax is imposed on the gross proceeds from all sales of tangible…
Vermont Legislature Addressing Several Digital Tax Issues in Miscellaneous Tax Bill
By Jonathan Feldman on
Posted in Digital Economy
Vermont H. 954, a collection of miscellaneous tax proposals, includes several digital taxation proposals. Vermont currently charges a 2.4% “universal service charge” on the sale of prepaid wireless telecommunication services. H. 954 would require marketplace facilitators collecting the corresponding sales tax to also collect the universal service charge beginning July 1, 2021. Additionally, H.…
Tennessee Ruling Clarifies Scope of “Digital Products”
By Jonathan Feldman on
Posted in Digital Economy
Tennessee’s sales tax applies to the sale, lease or licensing of specified digital products. By revenue ruling, the Tennessee Department of Revenue explained that sales tax applies to customized on-hold messaging services, digital signage services, and overhead music services.