Digital Economy

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The North Carolina Department of Revenue issued a letter ruling that concluded an online platform owner and administrator was not a marketplace facilitator because it neither collected nor otherwise processed payment for any items sold on the website. The taxpayer requesting the ruling was an affiliate of original equipment manufacturers “OEMs), and operated a platform…

The Illinois Department of Revenue (IDOR) released a general information letter outlining the applicability of Illinois Retailers’ Occupation Tax (ROT) on computer software licenses and maintenance agreements.

The letter states that sales of “canned” computer software are taxable retail sales in Illinois and are considered to be tangible personal property regardless of the form in…

On December 22, 2022, the Massachusetts Supreme Judicial Court held that a taxpayer’s use of computer cookies did not constitute substantial nexus with the state for periods prior to the United States Supreme Court’s decision in South Dakota v. Wayfair, Inc. The taxpayer sold auto parts entirely online and utilized cookies to track customers…

A recent report issued by the New Jersey Division of Taxation includes a suggestion that state lawmakers consider a cloud computing tax. The report titled, “Studying the Impact of the Digital Economy” recommends adopting a sales and use tax model that differentiates between physical good and services and digital goods and services. The report notes…

New York and Massachusetts are the latest states to introduce tax legislation targeting digital advertising and data collection. Like the similar bills introduced earlier in Connecticut, New York, and Indiana, proposals similar to these latest New York and Massachusetts bills have been rejected by the respective legislatures in prior sessions.

New York revisits …

Representative J.D. Prescott (R) introduced Indiana HB 1517, which would impose a surcharge tax on social media providers. HB 1517 is similar to legislation introduced by Representative Prescott during the 2021 and 2022 legislative sessions that did not make it out of committee.

Specifically, HB 1517 would impose a surcharge tax on social media…

The Missouri Department of Revenue recently published remote seller and marketplace facilitator FAQs regarding the implementation of the state’s remote seller and marketplace facilitator use tax collection requirement. Beginning January 1, 2023, vendors (including marketplace facilitators) selling tangible personal property into Missouri must collect use tax on the retail sale price if the vendor’s gross…

The North Dakota Tax Commissioner updated its website to explain North Dakota’s Wayfair small seller exception to collecting and remitting state and local sales tax on sales made into the state. Consistent with North Dakota statutes, the website states that, for remote sellers with no physical presence in the state, the exception for small sellers…

On November 4, 2022, the Washington Department of Revenue adopted WAC 458-20-290, a regulation explaining the state’s workforce education investment surcharge on select advanced computing businesses. The regulation defines a select advanced computing business as “a person who is a member of an affiliated group with at least one member of the affiliated group engaging…

The U.S. Court of Appeals for the Ninth Circuit held that the City of Reno was not entitled to file a lawsuit against streaming video providers for franchise fee payments. Reno sought damages for the streaming services providers’ alleged failure to collect franchise fees under Nevada’s Video Service Law. The court held that the law…