On March 10, 2023, the Supreme Judicial Court of Massachusetts held that capital gains resulting from the sale of an urban redevelopment project were not subject to Massachusetts personal income tax. As an incentive for private entities to invest in constructing, operating, and maintaining urban redevelopment projects, Massachusetts exempts these entities “from the payment of
Massachusetts
Massachusetts Supreme Judicial Court holds Massachusetts could not enforce pre-Wayfair computer cookie use tax collection law
On December 22, 2022, the Massachusetts Supreme Judicial Court held that a taxpayer’s use of computer cookies did not constitute substantial nexus with the state for periods prior to the United States Supreme Court’s decision in South Dakota v. Wayfair, Inc. The taxpayer sold auto parts entirely online and utilized cookies to track customers…
More digital advertising and data tax legislation introduced
New York and Massachusetts are the latest states to introduce tax legislation targeting digital advertising and data collection. Like the similar bills introduced earlier in Connecticut, New York, and Indiana, proposals similar to these latest New York and Massachusetts bills have been rejected by the respective legislatures in prior sessions.
New York revisits …
Massachusetts court of last resort to hear cookie nexus case for pre-Wayfair period
The Massachusetts Supreme Judicial Court has accepted a direct appeal from an internet retailer contesting the Department’s position that the in-state presence of cookies and apps were sufficient to satisfy the physical presence nexus standards in place prior to the US Supreme Court’s decision in South Dakota v. Wayfair, Inc. The Department assessed use…
Massachusetts online software provider receives property tax exemption
The Massachusetts Appellate Tax Board ruled that a company that develops and sells software-as-a-Service (SaaS) is allowed a property tax exemption for the machinery it uses in its development process. The Appellate Tax Board previously ruled that the company was a manufacturing corporation, and thus was entitled to use single sales factor apportionment provided to…
Massachusetts Legislature considering multiple digital advertising tax proposals
Following on Maryland’s heels, there are currently five separate digital advertising tax measures pending before the Massachusetts legislature. H. 2894 would impose a 5% tax on the annual digital advertising revenue from companies generating more than $25 million in digital advertising sales in Massachusetts. H. 2928 would not impose a tax directly, but would create…
What service? Massachusetts Appellate Tax Board rules that SaaS provider is a manufacturing corporation required to use single sales factor apportionment
The Massachusetts Appellate Tax Board found that software-as-a-service (SaaS) provider Akamai Technologies Inc. was a manufacturing corporation, rather than a service provider. Akamai, headquartered in Massachusetts, provided software-based cloud services allowing customers to manage the delivery of web and media content over the Internet. In Massachusetts, a manufacturing corporation must use single sales factor apportionment,…
Digital ad tax proposal introduced in Massachusetts
A Massachusetts representative has introduced House Bill 4179, a proposed 6.25% excise tax on gross revenue from digital advertising provided within Massachusetts. Following its introduction, House Bill 4179 was referred to the Legislature’s Joint Committee on Revenue for review. The bill proposes to tax revenue sourced to Massachusetts arising from banner advertisements, search engine…
Legal Alert: SCOTUS denies New Hampshire’s motion challenging Massachusetts’ taxation of nonresident remote workers during Covid-19
On June 24, 2021, the United States Supreme Court held a conference to review New Hampshire’s motion for leave that challenged Massachusetts’ taxation of wages earned by nonresident remote workers during the Covid-19 period. This morning, the Supreme Court denied New Hampshire’s motion. Because the Supreme Court declined to address the issues raised by New…
U.S. Solicitor General Opposes SCOTUS Review in New Hampshire v. Massachusetts
The U.S. Solicitor General has filed its amicus brief in New Hampshire v. Massachusetts (here). The Solicitor General argues that the United States Supreme Court should not exercise its original jurisdiction and it should deny New Hampshire’s facial constitutional challenge of Massachusetts’ taxation of New Hampshire residents.
For background, on October 19, 2020…