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
Legal Alert: Connecticut proposes digital advertising services tax and employee-elective wage compensation tax on employers
On April 14, 2021, the Connecticut General Assembly’s Joint Committee on Finance Revenue and Bonding introduced SB1106. The bill would establish the “Connecticut Equitable Investment Fund,” which would be funded by, among other things: (1) a new digital advertising services tax; and (2) a new wage compensation tax, whereby, at an employee’s or independent
Another One: Proposed Montana Bill Would Tax Digital Advertising Services
A digital advertising tax proposal (LC 3237) has been drafted in Montana at the request of a Republican legislator. The bill, currently in draft form, would impose a new 10 percent tax on the annual gross revenues derived from digital advertising services in Montana on each person with worldwide annual gross revenue from
New York senator introduces digital ad tax bill
On January 7, 2021, New York senator Michael Gianaris introduced S.1124, which would impose a new gross revenues tax on digital ads. The tax would be imposed on the annual gross revenues any person derives from digital advertising services apportioned to the state based on digital advertising receipts. “Digital advertising services” is defined to
New York Rings in the New Year by Proposing Bill that Would Expand Sales Tax Base to Digital Advertising Services
Legislation (S.302) was prefiled in the New York State Senate for the 2021-2022 legislative session that would expand the sales tax base to digital advertising services. The bill was prefiled by Democratic State Senator Kevin Thomas.
The bill defines “digital advertising services” as “advertisement services on a digital interface, including advertisements in
Maryland’s Proposed Digital Advertising Tax (HB 732) – Insights and Analysis
Ongoing insights and analysis regarding Maryland’s proposed digital ad tax bill
The Latest
- Maryland lawmakers are expected to revive a pair of failed controversial tax expansion proposals shortly after the scheduled start of the next legislative session on January 13, 2021.
- On May 7, Governor Larry Hogan vetoed H.B. 732, which proposed a first
Colorado updates regulations concerning remote sellers and marketplace facilitators
On September 10, the Colorado Department of Revenue promulgated four sets of regulations related to remote sellers and marketplace facilitators. One set, adopts a special rule that establishes the sales tax requirements and conditions for sales made through a marketplace facilitator’s marketplace. A second set updates Rule 39-26-102(3) to clarify when a retailer is doing
Rhode Island Governor Signs SSUTA Legislation
On June 24, the Rhode Island Governor signed into law S2650 Substitute A, which clarifies the state’s sales taxation of cloud computing and streaming digital products to comply with the Streamlined Sales & Use Tax Agreement. The bill amends the definition of a taxable sale to include any license, lease, or rental of prewritten
New Mississippi Marketplace Facilitator Law Leaves Food Delivery Services off the Menu
On June 30, Mississippi became the latest state to enact a marketplace facilitator law after Governor Tate Reeves signed House Bill 379, also known as the “Mississippi Marketplace Facilitator Act of 2020.” The law requires most marketplace facilitators to collect sales and use tax on behalf of marketplace sellers beginning on July 1, 2020.
DC Council Considers Advertising and Personal Information Sales Taxes
The D.C. Council is considering a new sales tax on advertising services, including digital advertising services, and personal information.
- On July 6th, the D.C. Council released the Committee Print of the Fiscal Year 2021 Budget Support Act of 2020, which includes a sales tax expansion to those services beginning October 1, 2020 at the reduced