Shaking things up in state and local tax
Shaking things up in state and local tax
By Kathryn Pittman and Andrew Appleby
The Ohio Tax Commissioner determined that billing and collection services were nontaxable debt collection services rather than taxable automatic data processing services. The taxpayer provided a variety of billing and collection services to physicians, health care practitioners and other medical personnel. These services included billing patients and performing collection-related…
By Ted Friedman and Timothy Gustafson
The Missouri Department of Revenue determined that clients of a moving company were not subject to sales tax on boxes provided by the company and used to move the clients’ belongings. As part of the company’s moving services, it provided boxes for clients to pack their belongings. Any boxes…
By Zachary Atkins and Andrew Appleby
The New York Supreme Court, Appellate Division, affirmed a 2013 trial court ruling denying Sprint Nextel Corporation’s motion to dismiss the attorney general’s False Claims Act complaint. In a slip opinion, the Appellate Division concluded that N.Y. Tax Law § 1105(b)(2), which the state attorney general contends imposes tax…
By Sahang-Hee Hahn and Pilar Mata
The Texas Comptroller has amended its regulation governing the sales tax treatment of cable television services. The revised regulation defines for the first time several terms related to the cable television services industry; adopts a destination-based sourcing rule for intrastate sales of streaming video; and taxes “bundled cable services.&rdquo…
By Jessica Kerner and Charlie Kearns
The Massachusetts Department of Revenue determined that the sale of access to an online database was not subject to sales and use tax because the “object of the transaction” was nontaxable data processing services rather than taxable prewritten software. The taxpayer sells subscriptions to a website that allows purchasers…
By Derek Takehara and Timothy Gustafson
The Virginia Tax Commissioner ruled that a taxpayer’s provision of electronic document and programming services in conjunction with its delivery of printed materials was not subject to sales and use tax. In addition to its sales of printed materials, the taxpayer provides electronic document services that allow customers and…
By Jessica Kerner and Timothy Gustafson
The Indiana Department of Revenue determined that the storage of advertising catalogs in Indiana, for a taxpayer’s out-of-state clients, did not create sales tax nexus for such clients. The taxpayer stored the catalogs at its facilities in Indiana prior to distributing the catalogs to recipients throughout the United States.
Minnesota issued additional guidance regarding its taxation of digital goods, which became effective July 1, 2013. For more details, view the Sales Tax Fact Sheet issued by the Department of Revenue.
By Mary Alexander and Andrew Appleby
The Missouri Department of Revenue determined that a Missouri-based seller was required to collect and remit sales tax on sales to a Missouri-headquartered customer despite the fact that the items were shipped to the customer’s out-of-state locations. The seller fulfilled the orders by delivering the purchased items to a…
By Zachary Atkins and Prentiss Willson
The Missouri Department of Revenue issued a letter ruling in which it determined that the sale or rental of streaming video content is not subject to Missouri sales or use tax. The service in question allowed customers to purchase or rent video content and to stream the content through…
