Digital Economy

Subscribe to Digital Economy via RSS

During a series of remote committee hearings, the Kansas House Committee on Taxation discussed revisions and amendments to marketplace facilitator legislation. Kansas is currently one of the few states without a marketplace facilitator or remote seller law, and the only state that has a remote seller rule without any thresholds for application. As initially drafted,…

By legislation, Illinois has required marketplace facilitators to collect and remit use tax since January 1, 2020. On May 8, the Illinois Department of Revenue published proposed regulation 150.804 clarifying the state’s marketplace facilitator legislation. Under the proposed regulations, a marketplace facilitator must certify to marketplace sellers that it assumes the rights and duties of…

On May 4, the California Department of Tax and Fee administration posted Proposed Regulation 1684.5, as well as an April 16 memorandum requesting permission to begin the rulemaking process. The proposed regulations provide definitions for statutory terms, clarify requirements for marketplace facilitators and marketplace sellers to register with the Department for a seller’s permit, and…

Earlier today, Maryland Governor Larry Hogan vetoed H.B. 732, which proposed a first of its kind Digital Advertising Tax. The Governor also vetoed H.B. 932, which would have expanded Maryland’s sales tax to sales of digital products (both downloads and streaming).

Unless a special session is scheduled between now and the end…

The Florida District Court of Appeal affirmed a trial court decision holding that certain online vacation rental platforms (the “Companies”) are not required to collect and remit Palm Beach County’s Tourist Development Tax (“TDT”). The Companies each provide an online platform where property owners can advertise their properties for short-term rentals. The Court explained that…

On April 13, 2020, legislation (S.8166) was introduced in the New York State Senate that would expand the sales tax base to digital advertising services. “Digital advertising services” is defined as “advertisement services on a digital interface, including advertisements in the form of banner advertising, search engine advertising, interstitial advertising, and other comparable…

The Tennessee Governor signed a bill that requires marketplace facilitators to collect and remit sales and use tax on behalf of third party sellers on April 1, 2020. Under S.B. 2182, marketplace facilitators that made or facilitated total sales of more than $500,000 during the previous 12 months to consumers in Tennessee will be…

Given the dramatic limitations on business travel and mandatory work-from home policies caused by COVID-19 concerns, multistate employers should evaluate how these disruptions impact their state and local tax obligations related to employment. Following is a brief summary of the state and local employment tax issues that multistate employers may need to address during the…