Shaking things up in state and local tax
Shaking things up in state and local tax
State efforts to obtain customer identifying information as part of digital goods audits have put a spotlight on data privacy concerns. State tax authorities often request customer names, addresses, telephone numbers, and even Social Security numbers and tax IDs, claiming this sensitive information is vital to determine how to source digital transactions.
In this article…
The Virginia General Assembly passed the 2024-2026 Biennium Budget (House Bill 30) that would expand the sales and use tax to “digital personal property” and certain digital “taxable services” as of January 1, 2025.
The General Assembly’s conference report resolved differences between the House and Senate budgets, respectively, on the sales tax treatment…
The Michigan Department of Treasury issued a Revenue Administrative Bulletin (RAB) describing the taxation of computer software and digital products to reflect updated case law and legislation enacted in 2004, which, among other things, defined “tangible personal property” to include “prewritten computer software.” The RAB provides that the “key feature” in determining whether prewritten software…
An administrative law judge at the New York Division of Tax Appeals found that a company’s vendor management fees were taxable as the sale of pre-written software. The company offers a web-based application that helps to manage and procure staffing services from requisition through billing. The company argued that its fees are not taxable because…
On June 23, 2021, Colorado’s Governor signed legislation adding “digital goods” to the statutory definition of “tangible personal property” subject to sales and use tax. HB 21-1312 (Effective July 1, 2021). The bill states that it interprets the definition of “digital goods” consistent with “the department of revenue’s long-standing treatment of digital goods, as reflected…
On May 24, 2021, the North Carolina Department of Revenue published Private Letter Ruling No. SUPLR 2021-0019 (dated April 29, 2021). The taxpayer is a North Carolina based company that provides subscriptions to information hosted in the cloud which its customers access through a web portal in exchange for a subscription fee. The industry-specific information…
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.
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…
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…
