On December 29, 2020, the Rhode Island Division of Taxation issued a declaratory ruling concerning the taxability of marketing analytic services using proprietary software and an online dashboard hosted on the taxpayer’s own servers. The software and services help customers develop advertising services and evaluate the effectiveness of advertising. According to the Division, the taxpayer’s

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

Representative J.D. Prescott (R) introduced Indiana House Bill 1312, which would impose a surcharge tax on social media providers.  This proposed bill shares similarities with proposed digital advertising taxes in Maryland and New York, except that Indiana’s proposed surcharge tax is targeted at social media providers deriving revenue from advertising services on their

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

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

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

Virginia’s peer-to-peer vehicle sharing tax, passed in April, takes effect on October 1. Generally, vehicle owners with up to ten shared vehicles will be subject to a 6.5% gross tax. The law obligates vehicle sharing platforms to collect the tax on behalf of the owners if the platform has established sufficient contact with the state.

On August 25, California’s Department of Tax and Fee Administration released a discussion paper and proposed amended regulations to clarify when marketplace facilitators are considered the retailer with regard to drop shipment transactions. The CDTFA is accepting written comments and will hold a virtual hearing on the proposal September 15.

On August 25, California’s Department of Tax and Fee Administration released a discussion paper and proposed amended regulations to clarify when marketplace facilitators are considered the retailer with regard to drop shipment transactions. The CDTFA is accepting written comments and will hold a virtual hearing on the proposal on September 15.

South Carolina Information Letter No. 20-23 clarified that COVID-19-related surcharges, takeout charges, and the like are subject to sales tax. The information letter, released August 5, “remind[ed]” taxpayers that the 6% sales tax applies to “gross proceeds of sales,” which includes all value that comes from the sale of tangible personal property, such as restaurant