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
On February 20, 2020, the Maryland House of Delegates introduced HB 1628, which would reduce the sales tax rate from 6% to 5% and expand the base to tax almost all services. If passed, the bill would take effect January 1, 2021. This bill is sponsored by key members of House leadership, including the
The Colorado Department of Revenue will hold a stakeholder work group to discuss a draft sales tax rule that will “clarify the Department’s treatment of digital goods as tangible personal property.” In advance of the meeting, the Department has prepared a draft rule. Interested parties can attend the work group meeting on March 4,
The Maryland House of Delegates is considering legislation (House Bill 426) that would impose sales and use tax on digital products and sales tax on digital codes. If signed into law, Maryland would begin taxing digital products and digital codes on July 1, 2019. House Bill 426 was read for the first time in the
On June 21, 2018, the US Supreme Court struck down the “physical presence rule” of Quill and National Bellas Hess which barred states from imposing sales tax collection requirements on certain out-of-state sellers. This decision is expected to have a significant impact on online sales across the country.
The case, South Dakota v. Wayfair,
By Elizabeth Cha and Scott Wright
The Texas Court of Appeals held that a seismic data gathering company was entitled to a cost of goods sold (COGS) deduction for costs of labor and materials incurred to acquire and process seismic data for its clients. Pursuant to Tex. Tax Code § 171.1012(i), a taxpayer may include
By Nicole Boutros and Jeff Friedman
The Director of the Arizona Department of Revenue affirmed an Administrative Law Judge determination that a taxpayer must pay the Transaction Privilege Tax on sales of access to the taxpayer’s subscription-based online research service. The Director reasoned that these sales were taxable as rentals of tangible personal property—and not
By Chris Mehrmann and Charlie Kearns
The Tennessee Department of Revenue has issued guidance explaining that the retail sale of, use of, or subscription to a computer software maintenance contract is subject to sales and use tax when: (1) the maintenance contract is sold as part of a taxable sale of computer software; (2) the
On August 7, the Chicago Department of Finance delayed the effective date of the imposition of the Personal Property Lease Transaction Tax on cloud computing services from September 1, 2015, to January 1, 2016. However, the Department did not delay the effective date of the imposition of the Amusement Tax on streaming services. Chicago will
Yesterday, the Multistate Tax Commission held meetings of its Litigation, Uniformity, and Strategic Planning Steering Committees. The meetings were generally dominated by discussions of evolving apportionment issues, including litigation and significant edits to existing regulations. The Uniformity Committee also advanced its new model “engaged in business” statute.
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