Shaking things up in state and local tax
Shaking things up in state and local tax
The Tennessee Department of Revenue ruled recently that an information technology company’s platform product was subject to Tennessee sales and use tax. The platform was used to support a decision-making process.
The platform was hosted on Taxpayer or third-party servers, and users accessed the platform from their employer’s electronic software system. The platform was highly…
The Missouri Department of Revenue released a private letter ruling issued in December 2021 determining that a company’s private wireless network was not subject to Missouri sales tax. The company provides wireless services in Missouri, including voice, messaging, Internet access and private network services. The private network services provide machine-to-machine data transmission, which is segregated…
Since 2001, Georgia has provided a sales and use tax exemption for high-technology companies that invest at least $15 million in eligible computer equipment (including hardware and software) in a calendar year. O.C.G.A. § 48-8-3(68). During the 2021 legislative session, the Georgia General Assembly passed SB 6, which included significant changes the High-Tech Exemption. …
The Minnesota Department of Revenue has released updated guidance regarding the state’s requirement that out-of-state marketplace providers collect and remit Minnesota sales tax if their total sales (including facilitated sales) over the prior 12-month period total either 200 or more retail sales shipped to Minnesota, or more than $100,000 in retail sales shipped to Minnesota.…
On January 18, 2022, Governor Kathy Hochul released the fiscal year 2023 budget Briefing Book. While we are still waiting for the public release of accompanying legislation (i.e., the Budget Bill) and memoranda, the Briefing Book indicates that the Budget Bill will propose a variety of tax cuts targeting middle-class individuals and small businesses.…
The New York Division of Tax Appeals determined that a multilevel marketing company’s provision of access to its web-based software that contains confidential and proprietary information and reports for use in developing business was neither the taxable sale of prewritten computer software, nor the sale of a taxable information service. The company, a multilevel marketing…
The Indiana Department of Revenue issued a protest ruling that an auto parts manufacturer was entitled to a refund on certain software service purchases for the 2017, 2018, and 2019 years. The taxpayer licensed software through a remote platform into which taxpayer loaded its own data for education services, cloud services, and manufacturing support services.…
The Fifth Circuit Court of Appeal affirmed the trial court’s ruling that online travel companies (OTCs) did not owe local sales and occupancy taxes on the fees charged by the OTCs to their customers for facilitating the customers’ online reservations with hotels located in Jefferson Parish, Louisiana nor were responsible for remitting the taxes collected…
A New York Division of Tax Appeals administrative law judge determined that a California-based company’s sale of memberships to access its online medical technology platform was the provision of a nontaxable service rather than a taxable sale of prewritten software. The company offered membership-based “care navigation services” to patients of physician-owned medical practices through a…
In a recently published private letter ruling, the Kentucky Department of Revenue concluded that a taxpayer’s service via a Software as a Service (SaaS) model was not a transfer or sale of tangible personal property, and therefore not a taxable transaction. The taxpayer in the ruling charged for access and use of its web-based…
