Shaking things up in state and local tax
Shaking things up in state and local tax
By Jessica Kerner and Timothy Gustafson
The New York Department of Taxation and Finance advised a website operator, through which restaurants offer meals for sale, that it was not subject to sales tax on the fees it charged to the restaurants for services provided. The website allows approximately 5,000 restaurants in more than 27 cities…
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By Kathryn Pittman and Andrew Appleby
The Virginia Tax Commissioner determined that an ink manufacturer’s purchase of cleaning chemicals did not qualify for the industrial manufacturing exemption from sales and use tax. To avoid color contamination, the taxpayer had to regularly clean the equipment used to produce the ink with special cleaning chemicals. The taxpayer…
By Ted Friedman and Timothy Gustafson
The New York State Department of Taxation and Finance issued a Tax Bulletin addressing the application of sales tax to sales of computer software and related services. The Department explained that the sale of prewritten software is taxable, while the sale of custom software is not subject to tax.
By Derek Takehara and Andrew Appleby
The Texas Comptroller determined that a semiconductor manufacturer’s purchases of computer software-related services were subject to sales and use tax because the taxpayer failed to prove that such purchases qualified for the multistate benefit exemption. Taxable services performed for use in Texas are generally subject to tax. Because some…
By Mary Alexander and Timothy Gustafson
The Colorado Department of Revenue determined that a mail-order seller was required to collect state and local sales tax on orders shipped to localities where it had established nexus and state use tax (and any applicable special district use tax) on all other sales shipped to customers in Colorado.
On July 28, the Multistate Tax Commission (MTC) Uniformity Committee tabled two projects in order to…
This week the Multistate Tax Commission (MTC) will consider a resolution endorsing the ABA’s model transaction tax act which, if enacted by the states, would limit frivolous lawsuits seeking to extract sales taxes from retailers and others.
View the full Legal Alert.
In a fact-intensive ruling, the Texas Comptroller determines that the multistate benefit exemption does not apply to the purchase of various services performed in connection with computer software. To qualify for the multistate benefit exemption (which only applies to services that became taxable after 9/1/1987), the Comptroller explains that a taxpayer must prove by…
By Nicole Boutros and Timothy Gustafson
The Michigan Supreme Court held that a taxpayer claiming a Michigan use tax exemption for sales tax “due and paid” on its purchases of tangible personal property must demonstrate that it actually paid sales tax on such property. The taxpayer provided a marine transportation service to transport asphalt and…
