digital services

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During the evening of St. Patrick’s Day, the Maryland State Senate passed on third reading (i.e., a floor vote) H.B. 732, which would impose a new Digital Advertising Gross Revenues Tax and H.B. 932, which would expand Maryland’s sales tax to digital products, including streaming. H.B. 732 passed by a vote of 29-16, and…

Massachusetts’ Supreme Judicial Court held that receipts from subscriptions to remote access software were subject to sales tax as taxable transfers of prewritten software.  Following a change in the law to tax sales of prewritten software regardless of medium of delivery, the Massachusetts Department of Revenue promulgated a regulation stating that such taxable sales include…

The Maryland Senate Budget and Taxation Committee voted to pass out of committee Senate Bill 2, which would impose a new tax on digital advertising services. The committee amended the bill to include a new sourcing provision. Now, the Comptroller of the Treasury must determine when gross revenues are derived from digital advertising services…

Florida’s proposed tax on peer-to-peer car sharing companies, H.B. 377, cleared its first hurdle and passed the state House Ways and Means Committee on February 11. The bill would require car-sharing companies to collect a 6% sales tax on vehicle leases made through their platforms. Also, under the proposed bill, leases made through the…

A 2018 Arizona ballot initiative banned the imposition or increase of transaction-based taxes on services. A December 2019 ordinance in Phoenix increases the fee charged on pickups by on-demand drivers at the Phoenix airport. The ordinance was supposed to take effect February 1, 2020, but the city agreed to suspend collection as the state of…

Earlier this month, Maryland State Senators Miller and Ferguson introduced Senate Bill 2, which would tax Maryland digital advertising service gross revenues at up to a 10% rate. Earlier today, the Department of Legislative Services issued the Fiscal and Policy Note for the proposal, which estimates up to $250 million of revenue in the…

By Open Weaver Banks and Liz Cha

The Arizona Department of Revenue (Department) issued a taxpayer information ruling stating that a taxpayer’s gross income from transactions provided through the use of computer software is not subject to tax under the personal property rental classification for Arizona Transaction Privilege Tax purposes.

The taxpayer’s software provides its…

By Hanish Patel and Eric Coffill

The Alabama Tax Tribunal held that a taxpayer was entitled to a refund of sales taxes paid on purchases of software that was modified for its exclusive use because it constituted nontaxable custom software. Relying on its regulation, the Alabama Department of Revenue (DOR) denied the refund, stating the…