South Carolina has issued a private letter ruling regarding the application of sales and use tax to a cloud-based software subscription service.
Online Software Subscription Fees Taxable in Massachusetts
Massachusetts found that a taxpayer’s subscription fees for online software products are subject to sales tax as sales of tangible personal property.
Delivery Method Changes Everything: Navigating Sales Tax on Intangible Goods
Explore cases where seemingly intangible goods can be converted to tangible personal property for sales tax purposes.
Sales and Installation of Computer Cabling Are Exempt in Ohio
Effective October 22, 2019, sales and installation of computer cabling are exempt from Ohio sales and use tax but the contractor owes use tax on the cost of the materials installed into real property.
Utah Repeals Legislation that Expanded Taxation to Specified Services, Repealed and Created Exemptions
Effective January 29, 2020, Utah enacted legislation that repeals previously enacted legislation, S.B. 2001, that included expansion of taxability to specified services, the elimination of sales tax exemptions, the creation of new sales tax exemptions, and more.
Video Streaming Services Subject to Tax in Kentucky
Effective July 1, 2019, video streaming services are subject to Kentucky excise tax and gross receipts taxes as taxable “multichannel video programming services.”
Chicago Increases Personal Property Lease Transaction Tax, Effective January 1, 2020
Effective January 1, 2020, Chicago’s Personal Property Lease Transaction Tax increases from 5.25% to 7.25% on charges for cloud services.
Point-of-Sale Services Subject to Washington Sales and Use Tax
The purchase of point-of-sale (POS) services by a taxpayer was subject to Washington sales and use tax as taxable digital automated services.
District of Columbia Repeals Sales Tax Exemption for Qualified High Technology Companies
Effective October 1, 2019, D.C. has repealed two sales and use tax exemptions for purchases and sales by Qualified High Technology Companies.
Washington Issues Guidance on Taxability of Bitcoin-Related Activities
The Washington Department of Revenue has issued a statement regarding the taxability of bitcoin-related activities.
Connecticut Increases Tax Rate on Most Digital Goods and Certain Software
The sales and use tax rate on digital goods and certain software will increase to 6.35%, effective October 1, 2019.
North Carolina Expands Applicability of Sales Tax to Digital Property
Effective October 1, 2019, North Carolina enacted legislation that expands the applicability of sales tax to digital property.
Mississippi Amends and Creates Data Center Exemptions
Effective July 1, 2019, Mississippi has enacted legislation that amends and creates sales and use tax exemptions for data centers.
Alabama Supreme Court Holds That All Computer Software is Taxable
The Alabama Supreme Court held that all software, including custom software created for a particular user, is “tangible personal property” and therefore taxable.
Online Subscription-Based Educational Curriculum Not Taxable in Texas
Sales of an online subscription-based educational curriculum were exempt from Texas sales and use tax since the curriculum is primarily instructional in nature.
Software Maintenance Services Not Subject to Colorado Sales and Use Tax
A company’s charges for computer program maintenance services were not subject to Colorado sales or use taxes.
Cloud & Software Taxation After South Dakota v. Wayfair
States have been tackling taxation of software and the cloud for quite some time and this trend has continued post-South Dakota v. Wayfair.
Online Educational Services Not Subject to Indiana Sales Tax
An out-of-state taxpayer’s online educational services were not subject to tax because they were considered remotely accessed software.
Iowa Expands Tax Base to Include Additional Specified Services
Iowa has enacted legislation that expands the state’s tax base to include additional specified services, effective January 1, 2019.
Sales of Digital Goods Taxable in District of Columbia
Effective January 1, 2019, sales of digital goods into the District of Columbia are subject to sales and use tax.
Use of Cloud Software Services via Hotel Internet Exempt in Indiana
Indiana has updated guidance regarding sales tax for hotels, motels and lodging establishments to reflect legislative changes regarding cloud computing.
Royalties Paid for Intellectual Property Exempt in Pennsylvania
Royalties paid for intellectual property used in operating video game machines in a casino resort were exempt from Pennsylvania sales and use tax.
Software as a Service Taxable in Rhode Island, Effective October 1, 2018
Effective October 1, 2018, Software as a Service (SaaS) is subject to Rhode Island sales and use tax.
Mobile Application Program and Bundled Services Subject to Texas Sales Tax
In a private letter ruling, the Texas Comptroller found a taxpayer’s mobile application program and bundled services taxable as data processing services.