In this episode of the SALT Shaker Podcast, host Chris Lee discusses a Kansas proposal to enact a marketplace facilitator law, two residency cases from California, and a New York decision concerning sales tax treatment of certain advertising services.
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On February 9, 2021, Governor Laura Kelly announced a plan to add market facilitator collection and remittance to other tax related legislation, Senate Bill 22. The governor noted that Kansas is one of only three states that has not enacted marketplace facilitator provisions and that this change would allow Kansas “…to collect from fewer
On February 3, 2021, the Kansas House of Representatives introduced H.B. 2230, which would expand the state’s sales tax to include all sales of digital property and subscription services, regardless of whether the purchaser has a permanent right to use the property or whether the right to use the property is conditioned on continued
On January 13, 2021, the governor of Kansas released her budget report for fiscal year 2022, which would require marketplace facilitators to begin collecting retail sales and compensating use taxes on sales to Kansas customers on July 1, 2021. The budget also contains a proposal to impose sales tax on all sales of digital property
During a series of remote committee hearings, the Kansas House Committee on Taxation discussed revisions and amendments to marketplace facilitator legislation. Kansas is currently one of the few states without a marketplace facilitator or remote seller law, and the only state that has a remote seller rule without any thresholds for application. As initially drafted,
Under current Kansas DOR guidance, all remote sellers, regardless of size, are required to collect sales and use taxes. Kansas has introduced two bills to address the taxation of digital sales. H.B. 2537 would introduce a safe harbor for remote sellers with under $100,000 of gross revenues in the state. Additionally, H.B. 2513 would first
By Charles Capouet and Open Weaver Banks
The Kansas Department of Revenue addressed the taxability of sales of video game access codes, subscription cards, point cards, and notional dollar value cards. Initial sales of access codes that allow customers to download video games or video game add-ons directly to the customer’s computer or other device
The Kansas Attorney General issued an opinion in which it concluded that passing proposed legislation during the 2013 legislative session to amend legislation enacted in 2012 would not result in an unconstitutional retroactive tax increase. The proposed legislation, if signed into law, would define the tax basis for sales of business interests or shares, eliminate credits
Iowa and Kansas recently issued rulings regarding the taxability of cloud-based software applications and online training services. While the conclusions reached by both states—that the services are not taxable—are generally the same, the reasoning relied upon by each department of revenue illustrates the ongoing uncertainty of applying state sales and use tax laws to cloud computing services.
The Iowa Department of Revenue (IDOR) looked to the state’s statutory authority and acknowledged that the taxability of “cloud computing has not been expressly addressed by the Iowa Code.” Nonetheless, the IDOR determined that the sale of hosted software is not taxable because the Iowa Code provides that a “taxable ‘sale’ of tangible personal property does not occur if the substance of the transaction is delivered to the purchaser digitally, electronically, or by utilizing cable, radio waves, microwaves, satellites, or fiber optics.” I.C. § 423.3(67). Likewise, the IDOR considered web-based training to be nontaxable because “software training” is not an enumerated service under the Iowa Code.
Continue Reading Iowa and Kansas: Remote Access to Software is Not Taxable . . . Or Is It?
On September 1, Kansas kicked off its third tax amnesty program since 1984. Kansas enacted the amnesty program as part of Senate Bill 572, which the Kansas legislature passed on May 27, 2010. The program will run from September 1, 2010, to October 15, 2010. Unlike some other states’ amnesty programs, Kansas’s amnesty program allows eligible, participating taxpayers to receive abatement of both penalties and interest. However, in return, taxpayers must give up all refund claims related to amounts paid under the program. For taxpayers that have accrued significant penalties or interest on past due claims, but may have reasonable positions with respect to such unpaid claims, participating in the Kansas program may not be advisable.
