On June 5, 2020, Governor Cooper signed HB 1079, which will exclude sales of certain digital audio and visual works from the state’s sales and use tax, and make other tax changes. The law exempts sales of digital educational services and the sales of digital audio or digital audiovisual works that consist of nontaxable
Digital Economy
Colorado Proposes a Series of Regulations to Address Digital Taxation
By Jonathan Feldman on
Posted in Digital Economy
The Colorado Department of Revenue has proposed several regulations related to taxation of digital goods, remote sales, and marketplace collection. First, it proposed a “doing-business” rule, which clarifies a person maintains a business in Colorado if the person meets the economic nexus test of $100,000 annual retail sales in Colorado. It also proposed another…
Kansas Again Fails to Pass Remote-Seller and Marketplace Facilitator Bill
By Jonathan Feldman on
Posted in Digital Economy, Marketplace
Kansas lawmakers did not take their second bite at the remote-seller and marketplace-facilitator apple during a special legislative session. On June 3, 2020, Representative Steven Johnson re-introduced HB 2014, which would have required remote sellers with $100,000 or more in annual in-state sales to collect and remit taxes and would have required marketplace facilitators…
Washington Warns Taxpayers Not to Rely on Current Remote Seller Regulations
By Jonathan Feldman on
Posted in Digital Economy
Washington has required remote sellers meeting the $100,000 annual revenue of 200 annual transaction threshold to collect and remit sales tax since October 1, 2018. The requirement was first introduced by regulation and later confirmed and clarified by statute. In a May 22 emergency regulation, the Washington Department of Revenue warned taxpayers not to…
North Carolina Legislature Approves Sales and Use Tax Exclusion for Digital Educational Services
By Jonathan Feldman on
Posted in Digital Economy
North Carolina HB 1079, providing a variety of sales tax changes, has been approved by both houses of the legislature and now awaits the Governor’s signature. In particular, the bill would exclude from sales and use tax sales of digital educational services and would exempt: (1) sales to home school operators of digital audio…
Louisiana Legislature passes Marketplace Collection Bill
Posted in Legal Alert, Marketplace
On May 28, 2020, the Louisiana Legislature passed S.B. 138, which, if signed by the Governor, will require marketplace facilitators to collect and remit state and local sales and use taxes if they exceed an economic nexus threshold of $100,000 in sales or 200 transactions in the state in the current or previous calendar year.…
North Carolina Proposes Extending Marketplace Obligations to Local Meals Taxes
By Jonathan Feldman on
Posted in Marketplace
The North Carolina legislature has introduced a pair of bills, H.B. 1080 and S.B. 727, which would require marketplace facilitators of prepared food delivery to collect local meals taxes on top of the existing obligation to collect state sales tax. The pending bills also clarify that the state’s marketplace collection threshold of $100,000 or…
Missouri Fails to Pass Marketplace Facilitator Legislation
By Jonathan Feldman on
Posted in Marketplace
Kansas Legislators Again Fail to Pass Remote-Seller and Marketplace Legislation
By Jonathan Feldman on
Posted in Marketplace
Kansas Legislators adjourned their legislative sessions without passing key state tax legislation: S.B. 266 would have established legislative thresholds for its remote seller rules and would have enacted remittance requirements for marketplace facilitators, but the initiative failed. Without S.B. 266, Kansas also won’t apply a legislative threshold to the remote-seller collection rules.
Louisiana Advances Marketplace Bill and Commission Announces Remote Seller Requirements
By Jonathan Feldman on
Posted in Marketplace
On May 22, the Louisiana House Ways and Means Committee advanced S.B. 138, which would impose tax collection and remittance obligations on marketplace facilitators if they have either $100,000 of in-state sales or 200 separate transactions into the state. The proposal excepts telecommunication service providers from the definition of marketplace sellers and would allow…