Shaking things up in state and local tax
Shaking things up in state and local tax
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…
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…
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…
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…
Sales taxes are imposed by all but five states. While the types of sales that are subject to tax vary significantly by state, virtually all sales tax states look to the actual consideration paid by the buyer to the seller to determine the sales price. Despite this long-standing and almost uniform measure of the sales…
In this episode of the SALT Shaker Podcast, host and Associate Chris Lee is joined by Associate Justin Brown to discuss transfer pricing and how it affects state tax and in particular how states may use transfer pricing or other theories to make adjustments to sales tax. Recently, some jurisdictions have challenged sales tax on…
The New York State Department of Taxation and Finance released an advisory opinion finding the Petitioner’s fee paid for IT support services was not subject to sales and use tax because the only taxable component of the services was delivered to the Petitioner outside of New York. The Petitioner hired a New York-based company to…
This year, Partner Nikki Dobay launched a new column for Tax Notes entitled “SALT Policy Picks,” which provides Nikki’s reflections on state and local tax policy and legislative updates.
In one of her initial columns, Nikki argues that now is not the time for states to consider sales tax base expansion, discussing specifically that…
The New York State Department of Taxation and Finance issued an advisory opinion determining that the fee paid for an information technology support service was not subject to sales and use tax because the taxable component of the service was delivered outside of New York. The taxpayer provided investment advice to its customers and as…
The New York State Department of Taxation and Finance issued an advisory opinion, concluding that a taxpayer’s charges for its online webhosting solution were not subject to sales tax. The customers pay an annual fee for their events (audio and video meetings, conferences, webinars and live presentations) to be hosted and maintained and also…
