Sales and Use Tax

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The Georgia Court of Appeals held that a group of telecommunications dealers that were AT&T subsidiaries (collectively “AT&T”) had standing to challenge the Georgia Department of Revenue’s (“DOR”) denial of sales tax refund claims.  Effective May 5, 2009, O.C.G.A. §§ 48-2-35 and 48-2-35.1 were amended to provide standing for “dealers” to file refund claims on…

The Michigan Supreme Court held that sales of bottle and can recycling machines that help retailers comply with Michigan’s bottle-deposit law may qualify for the state’s sales and use tax exemption applicable to machinery used in an industrial-processing activity.  The Michigan Department of Treasury unsuccessfully argued that the machines may not qualify for the exemption…

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.

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…

In a recently issued revenue ruling, the Tennessee Department of Revenue determined that a taxpayer’s digital services provided to other businesses were taxable “specified digital products,” a broad term based on definitions (and subject to detailed operating rules) in the Streamlined Sales and Use Tax Agreement. Sellers of business-to-business digital services should review this ruling…

In a recently released letter ruling, the Georgia Department of Revenue concluded that charges for the electronic delivery of medical records, and services related to the management and processing of medical records, are not subject to sales and use tax, while charges for transferring medical records delivered on paper or another “tangible format” are subject…

On June 30th, 2020, the Internet Tax Freedom Act’s grandfather clause will expire. ITFA prohibits states and political subdivisions from imposing taxes on Internet access. But the grandfather clause has permitted such taxes if they were generally imposed and actually enforced prior to October 1, 1998. In particular, Ohio and Texas have imposed their sales…

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,…

The Nebraska Department of Revenue (“Department”) issued guidance explaining that Nebraska Advantage Act (“Act”) project-holders may not have to repay incentives if they cannot meet their project obligations due to COVID-19. The Act provides incentives to businesses that commit to certain levels of employment and investment as part of an expansion project in Nebraska. The…