Utah enacted a new tax on targeted advertising, applying an annual levy tied to the state sales tax rate on qualifying ad revenue attributed to Utah users. The law applies to certain large advertising businesses and is effective for tax years beginning on or after Jan. 1, 2027.
Missouri Rules Certain Digital Products and Software Subscriptions as Not Subject to Sales Tax
Missouri LR 8408 finds video game cosmetic items and online software subscriptions are not taxable, and the platform is not a marketplace facilitator.
Delays Likely for Illinois Digital Asset Tax as Litigation Begins
The Digital Chamber sued Illinois over its digital asset tax on crypto, citing the Commerce Clause and the Internet Tax Freedom Act. See what could change.
Illinois Delays Digital Asset Transaction Tax as Legal Challenge Moves Forward
Illinois pushed its 0.2% digital asset transaction tax on crypto to July 1, 2027. See who owes it, the $100,000 threshold, and the legal challenges.
Illinois Imposes New Tax on Targeted Advertising Services
Illinois S.B. 3019 adds a 10% tax on targeted advertising gross receipts starting Jan. 1, 2027. See who must remit, what is covered, and the legal challenge.
California Expands Sales Tax to Software and SaaS Under SB 122
Scroll for the most recent updates: With the passage of SB 122, California’s definition of “tangible personal property” (TPP) has expanded to include certain digital products, specifically prewritten (canned) computer software, regardless of how it is delivered. Historically, California limited…
Platform and Marketplace Fees No Longer Taxable in Texas
A Texas Comptroller order ends sales tax on fees sellers pay platforms like Amazon and DoorDash. See what changed, what’s covered, and what to do next.
Oklahoma Provides Helpful Sales Tax Guidance for SaaS Companies
An Oklahoma Tax Commission private letter ruling found one SaaS company’s electronically delivered subscriptions exempt from sales tax, plus setup and support.
New York Rules SaaS Vendor Management System Fees as Taxable Software Licensing
The New York Tax Appeals Tribunal has upheld an earlier ruling by an administrative law judge (ALJ) that fees charged by a taxpayer for their vendor management system (VMS), provided through a software-as-a-service (SaaS) model, are subject to taxation as software licensing.
Illinois Social Media User Tax and Digital Ad Tax Face Further Legal Challenges
NetChoice filed new lawsuits on September 11, 2026, challenging Illinois\’ Social Media User Tax and Digital Ad Tax as unconstitutional and federally preempted.
Why Trust May Be the Most Important AI Challenge for the Tax Ecosystem
As AI reshapes tax administration, the real challenge isn\’t efficiency — it\’s trust. Explore transparency, accountability, and public confidence.
Washington Clarifies Tax treatment of SaaS Implementation Services and Travel Costs
Washington ruled SaaS implementation services and travel reimbursements are taxable when exclusively connected to a taxable SaaS product.
Maryland Enacts New Tax on Digital Advertising
The Maryland legislature overrode Governor Larry Hogan’s veto of a new tax on digital advertising (H.B. 732) on February 12, 2021, making Maryland the first state in the country to adopt a tax on digital advertising.
States Expand Sales Tax into New Frontiers as Digital Businesses Pick Up the Slack for Struggling Consumers
SaaS sales tax is expanding fast — Vermont, Louisiana, Maryland, Washington, Utah, Colorado, and California all moved since 2024. Post-Wayfair trends.
Washington Provides Guidance Regarding Taxability of Digital Automated Services
Washington DOR clarifies DAS taxability under ESSB 5814 — covering professional services, data processing, and digital features added to existing products.
Cloud-Based Educational Services Exempt from Indiana Sales Tax
Indiana ruled cloud-based educational and SaaS training services aren\’t taxable — no permanent right of use (Revenue Ruling 2026-04-RST).
Colorado Appeals Court Rules Netflix Subscriptions Are Subject To Sales Tax
A Colorado appeals court has ruled that Netflix subscriptions are subject to sales tax. Learn how this decision impacts digital service providers and tax compliance nationwide.
Colorado Ends Downloaded Software Tax Exemption Under HB 26-1223
Colorado HB 26-1223 makes downloaded software taxable starting January 1, 2027, and likely brings SaaS into the tax base. See the new exemption rules.
Utah Imposes Sales and Use Tax on Many Digital Products
Beginning July 1, 2026, Utah\’s sales and use tax will apply to digital products, SaaS, streaming, and gaming services under SB 162. See what changed.
Maryland’s New Tech Tax Targets Digital Services
The Budget Reconciliation and Financing Act of 2025 (House Bill 352) was signed by the Maryland Governor on May 20, 2025. This bill builds on the state’s 2021 expansion of the digital goods and services tax, imposing a 3% sales tax on a broad range of data and information technology services.
Utah Enacts New 2% Excise Tax on Digital Content
Utah has enacted a new 2% sales‑based excise tax imposed on the sales price of certain digital transactions.
Kentucky Clarifies Sales Tax Treatment of AI-Powered Software as Taxable
Kentucky has clarified that AI-powered software is taxable under its sales tax laws, treating AI functionality as part of taxable prewritten or cloud-based software. Learn what this means for SaaS providers, software users, and compliance planning.
Chicago Rolls Out Social Media Amusement Tax
Chicago’s new Social Media Amusement Tax takes effect Jan. 1, 2026, charging social media platforms $0.50 per month per user over 100,000 Chicago users.
Chicago Personal Property Lease Transaction Tax Rate Increases in 2026
Effective January 1, 2026, Chicago’s Personal Property Lease Transaction Tax (including many cloud and software leases) increases from 11% to 15% under the 2026 Revenue Ordinance. Learn what this hike means for businesses and users of cloud services.