Shaking things up in state and local tax
Shaking things up in state and local tax
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The South Dakota Department of Revenue issued updated guidance regarding the application of sales tax to sales of Internet access and internet-related services. In particular, the Department added “Internet e-mail services” and “web hosting” to the list of exempt Internet-related services. However, the Department removed “live chat or conferencing fees” from the list. The Department…
In 2020, state and local tax practitioners have witnessed the emergence of a new trend: the proposed taxation of advertising services and data usage. In this Bottom Line webcast, Charles Capouet and Samantha Trencs discuss:
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During a hearing held on February 20, 2020, the South Dakota House of Representatives’ Taxation Committee approved an amendment to House Bill 1284, striking the proposed elimination of the sales tax exemption for advertising services. The bill’s sponsor, Representative Finck (Republican), introduced the amendment himself. He clarified that he did not intend to tax…
On February 6, 2020, South Dakota Representative Finck introduced House Bill 1284, which would repeal the sales tax exemption for sales of advertising services. The South Dakota sales tax broadly applies to sales of services, unless specifically exempt. The bill has since been referred to the House of Representatives’ Taxation Committee. On Thursday, February…
Over 40 state legislatures have convened their 2020 legislative sessions. Last year, states moved quickly to impose collection and remittance obligations on remote sellers and marketplace facilitators in light of Wayfair. This year, states are charting a new course – proposing legislation to expand sales taxes to include advertising services or proposing entirely new taxes…
On January 9, 2019, the South Dakota Supreme Court upheld the denial of South Dakota’s advertising services use tax exemption to a Sioux Falls-based company (Company) that designs and maintains websites that allow individuals and car dealerships to advertise vehicles for sale. On audit, the Company was assessed use tax for purchases it made for…
On March 22nd, South Dakota Governor Daugaard signed into law Senate Bill 106, the passage of which may be the ultimate vehicle to challenge Quill at the U.S. Supreme Court. With landslide support in the South Dakota Senate and House of Representatives, S.B. 106 adopts an economic nexus standard for sales tax remittance and allows…
By Ted Friedman and Andrew Appleby
The South Dakota Supreme Court held that a corporation operating a hunting lodge did not owe use tax on its purchases of food, beverages and ammunition because the lodge purchased the goods for resale to the lodge’s customers in the regular course of business. The lodge offered hunting packages…
The South Dakota Supreme Court appears to have added the South Dakota sales tax to the list of fees associated with automated teller machine (ATM) usage. TRM ATM Corporation v. South Dakota Dep’t. of Rev., 2010 SD 90 (December 8, 2010). In TRM, an Oregon company that owned, operated, sold, leased, and serviced ATM machines was assessed South Dakota sales tax on transaction processing and surcharge fees received from sponsor banks and core-data companies (parties that serve as intermediaries in the ATM transaction by contracting with card-holders’ depository banks to make ATM services available to cardholders).
While TRM conceded the taxability of its transaction processing and surcharge fees under South Dakota’s sales and use tax laws, TRM claimed it was not liable for payment of the South Dakota sales tax. TRM made two arguments.…
