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On February 11, 2016, the U.S. Senate approved a permanent extension of the Internet Tax Freedom Act (ITFA) that is included in H.R. 644, the Trade Facilitation and Trade Enforcement Act of 2015. The bill also establishes an end date of June 30, 2020 for the seven states that currently impose a tax on internet access: Hawaii, New Mexico, North Dakota, Ohio, South Dakota, Texas, and Wisconsin. President Obama is expected to sign the permanent extension of the ITFA into law. The House of Representatives had previously passed H.R. 235, the Permanent Internet Tax Freedom Act, on December 15, 2015.  For our previous news item on this topic, visit Internet Tax Freedom Act Extended Through October 1, 2016.

 

UPDATE: On February 24, 2016, President Barack Obama signed into law the permanent extension of the Internet Tax Freedom Act.

 

(Trade Facilitation and Trade Enforcement Act of 2015)

(02/23/2016)

On December 18, 2015, President Barack Obama signed H.R. 2029 – Consolidated Appropriations Act, 2016. The Act extends the Internet Tax Freedom Act (ITFA) through October 1, 2016. Prior provisions that grandfather taxes that existed prior to October 1, 1998 are also extended through October 1, 2016. For our previous news item on this topic, see Internet Tax Freedom Act Extended Until December 11, 2015. (H.R. 2029 – Consolidated Appropriations Act, 2016)

(01/18/2016)

In 2011, the Vermont legislature passed what is commonly referred to as a click through nexus law, providing that a remote vendor will be presumed to have Vermont nexus for purposes of collecting sales tax if it has agreements with residents to refer customers that led to sales in excess of $10,000 in the previous year32 V.S.A. Section 9701(I). This law takes effect after the Attorney General makes a determination that 15 or more states have similar provisions. Act 45 of 2011, Section 37(13).As a result, impacted remote sellers must register and begin collecting and remitting Vermont sales tax on December 1, 2015. An online application to obtain a Vermont business tax account and license to collect and remit Vermont sales tax is available at www.myvtax.vermont.gov. For our previous news item on this, visit Vermont Discusses Timeline for Implementing Click-Through Nexus. (VTax Connect Newsletter, Volume 2, Issue 4, Vermont Department of Taxes, November 2015; Updated: Statement of Vermont Department of Taxes on Vermont Click Through Nexus Law, Vermont Department of Taxes, November 2015)

(11/23/2015)

On September 30, 2015 the U.S. House of Representative passed H.R. 719, which includes a provision that would extend the Internet Tax Freedom Act (ITFA) through December 11, 2015. The ITFA was scheduled to expire on October 1, 2015. The bill will now go to President Obama for signature.

 

To see our previous news item on the ITFA, visit Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced.

 

To see an update on this news item, visit Internet Tax Freedom Act Extended Through October 1, 2016,

 

(H.R. 719)

(10/26/2015)

Vermont has enacted legislation specifying that effective July 1, 2015, prewritten software accessed solely on a cloud platform does not fall within the definition of "tangible personal property."  According to a fact sheet issued by the Vermont Department of Taxes, the legislation treats charges for access over the cloud as a computer service or intangible transaction, which generally are not subject to sales tax unless specifically enumerated.The legislation addresses only remotely accessed software. Prewritten software in other forms, including download, will continue to fall under the definition of "tangible personal property."  Specific digital products remain taxable. Vermont imposes sales tax on digital audio-visual works, digital audio works, digital books, and ringtones that are transferred electronically.(S.B. 138, Laws 2015, effective July 1, 2015; Fact Sheet No. FS-1084, Vermont Department of Taxes, August 2015)

(09/22/2015)

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