On June 19, the Mississippi House and Senate adopted the conference report on HB 379, bringing the state one step closer to adopting marketplace facilitator legislation. The bill would mandate marketplace facilitators to collect and remit tax on behalf of marketplace sellers if the facilitator makes more than $250,000 in sales into the state
Digital Economy
Louisiana House Advances Fantasy Sports Tax Bill
By Jonathan Feldman on
Posted in Digital Economy
The Louisiana House sent HB 64 to the Senate for consideration. The bill would impose an 8% tax on the net revenue of fantasy sports contests. Louisiana has until its special session ends on June 30 to pass the bill, which would take effect immediately.
Texas Delays Effective Date of Tax Sourcing Rule
By Jonathan Feldman on
Posted in Digital Economy
The Texas Comptroller has delayed until October 2021 the effective date of a new regulation that affects where local sales tax is allocated. The rule, which amends 34 TAC § 3.334, is meant to reduce the portion of sales tax revenue received by localities that host online retailer’s order-processing centers. The current rule generally provides…
Louisiana Enacts Marketplace Facilitator Legislation and Issues Related Guidance
By Jonathan Feldman on
Posted in Marketplace
On June 11, Louisiana’s Governor signed SB 138 into law. The law, which takes effect July 1, will mandate sales tax collection and remittance by marketplace facilitators with either $100,000 of in-state sales or 200 in-state transactions. The law (now known as Act 216) excludes from its requirements third-party payment processors, derivatives clearing organizations,…
Rhode Island passes SSUTA legislation
By Jonathan Feldman on
Posted in Digital Economy
On June 18, Rhode Island’s legislature passed H 7532, which expands the state’s tax base to computer software and streaming entertainment to comply with the Streamlined Sales & Use Tax Agreement. The bill expands the definition of a taxable sale to include any license, lease, or rental of prewritten or vendor-hosted computer software…
California Introduces Marketplace Facilitator Regulations
By Jonathan Feldman on
Posted in California, Marketplace
The California Department of Tax and Fee Administration has introduced clarifying proposed regulations for its marketplace facilitator regime. The regulations include definitions of statutory terms and clarify that: the $500,000 sales threshold for a marketplace facilitator includes both facilitated sales and direct sales; marketplace facilitators are required to register for a sellers permit or use…
Mississippi Senate Approves Marketplace Facilitator Legislation
By Jonathan Feldman on
Posted in Marketplace
The Mississippi Senate has passed HB 379, a marketplace facilitator bill, by a vote of 43-0. The bill requires marketplace facilitators with annual in-state revenues above $250,000 to collect and remit sales tax. The Senate amended the House bill – adding an exemption for third-party food delivery and adding an election for marketplace sellers…
Ohio and Texas Issue Guidance on Expiration of Internet Tax Freedom Act Grandfather Clause
Posted in Digital Economy, In the News
On June 30th, 2020, the Internet Tax Freedom Act’s grandfather clause will expire. ITFA prohibits states and political subdivisions from imposing taxes on Internet access. But the grandfather clause has permitted such taxes if they were generally imposed and actually enforced prior to October 1, 1998. In particular, Ohio and Texas have imposed their sales…
Chicago Suburb Proposes Expansion of Amusement Tax to Streaming
By Jonathan Feldman on
Posted in Digital Economy
The Evanston City Council voted on May 26, 2020 to introduce an ordinance that would extend its 5% amusement tax to reach online gaming and streaming. The Council stated that the increase is a reaction to a projected decrease in tax revenue from in-person amusement events. Given the “rise in popularity of streaming amusements, staff…
Mississippi Senate Committee Advances Marketplace Legislation
By Jonathan Feldman on
Posted in Marketplace
On June 4, 2020, the Mississippi Senate Finance Committee passed HB 379, which would require marketplace facilitators with more than $250,000 in sales into the state over a 12-month period to collect and remit sales and use tax starting July 1, 2020. The Committee also added an exemption for food delivery services and a…