The Ohio Department of Taxation recently issued an FAQ addressing the gross receipts calculation regarding remote sellers’ registration and tax remittance requirements. Following South Dakota v. Wayfair, Ohio required remote sellers to register with the Department and begin collecting sales tax if the seller had greater than $100,000 in gross receipts or at least
Getting SaaSy: Mississippi proposed sales tax rule targets cloud computing
The Mississippi Department of Revenue recently proposed a rule expanding the state’s sales tax to cloud computing.
The proposed amendments to the provisions regarding taxable computer equipment and services define “cloud computing” as “the delivery of computing resources, including software applications, development tools, storage, and servers over the Internet.” The term “cloud computing” includes the
Illinois’ marketplace facilitator law – insights and analysis
Recent developments for Illinois’ marketplace facilitator tax law.
The latest
- October 1 – The Illinois Department of Revenue releases Sales and Use Tax Form CRT-63 “Sales Through Marketplace Facilitator Certificate.” (PDF). This certificate, which must be renewed annually, must be provided by marketplace facilitators to marketplace sellers. The certificate must be maintained with
Streamlined Sales Tax Governing Board proposed draft changes to rules for sourcing digital codes without a purchaser address
The Streamlined Sales Tax Governing Board has requested input on whether to change the Streamlined Agreement’s rules on how to source sales of digital goods where purchasers do not provide addresses when completing the transaction. Without the full delivery address that would be obtained if a physical product was being delivered, a seller of digital
Apple alleges Ohio CAT improperly imposed on agency receipts
Apple recently appealed an Ohio Commercial Activity Tax (CAT) assessment, alleging that the Department of Taxation improperly treated receipts from sales made through its app store as Apple’s receipts for purposes of determining its tax base under the CAT. Ohio law allows agents to exclude gross receipts (other than commission) from the agent’s CAT base.
Alabama Department of Revenue rules that IT services provided from out of state are not subject to sales tax
In Revenue Ruling 2021-001, the Alabama Department of Revenue ruled that IT services provided by a foreign company with no physical presence in Alabama are not subject to sales tax. The foreign company provided an information technology system remotely to an Alabama production plant. Although the company provided these services remotely, it would also
Return to sender: Virginia Tax Commissioner concludes return label charges are taxable
Following a taxpayer’s assessment appeal, the Virginia Tax Commissioner determined that “easy return label” and “merchandise logo charges” were subject to Virginia sales tax.
Easy return labels
The taxpayer was a retailer of products sold online and through catalogs. The taxpayer offered its customers the option of returning merchandise using an “easy return label,” which
Texas city seeks to enjoin Comptroller’s rule on sourcing of online sales
Last year, the Texas Comptroller proposed a regulation that affects how local sales tax is allocated for online sales, to become effective October 1, 2021. While Texas generally uses origin-based sourcing, under the new rule, online sales will generally be sourced to the destination of the sale. Local governments protested these amendments, arguing that
Kentucky enacts sales tax exemptions for cryptocurrency mining facilities
Effective July 1, 2021, Kentucky has enacted sales tax and utility gross receipts exemptions for certain transactions involving the commercial mining of cryptocurrency. The Kentucky DOR explained the two recently enacted bills here. HB 230 exempts the sale or purchase of electricity used or consumed in the commercial mining of cryptocurrency from sales tax and
North Carolina Department of Revenue provides guidance regarding the provision of certain digital property
On May 24, 2021, the North Carolina Department of Revenue published Private Letter Ruling No. SUPLR 2021-0019 (dated April 29, 2021). The taxpayer is a North Carolina based company that provides subscriptions to information hosted in the cloud which its customers access through a web portal in exchange for a subscription fee. The industry-specific information