This blog post will explore three recent Midwestern state tax updates that could have a big impact – positive or negative – on your business.
Iowa Enacts Remote Seller Nexus Provisions
Iowa Governor Kim Reynolds has signed legislation containing extensive remote seller nexus provisions, effective January 1, 2019.
Kentucky Makes Changes to Definition of Prewritten Computer Software
Kentucky has enacted legislation that makes changes to the state’s sales and use tax definition of “prewritten computer software.”
Texas Updates Rule for Computer Hardware, Programs and Services
Texas updated its sales tax rule based on previously enacted legislation and department policy for computer hardware, programs, services, and sales.
Taxpayer Providing Digital Certificates Does Not Qualify for Human Effort Exclusion
A taxpayer that provides digital SSL certificates to businesses hosting commercial websites was liable for Washington sales tax and retail business and occupation tax.
Information Retrieval Products Taxable in Pennsylvania
Pennsylvania determined that a taxpayer’s sales of information retrieval products are subject to sales and use tax as tangible personal property.
Indiana Enacts Exemption for Cloud Software Transactions
Effective July 1, 2018, Indiana has enacted an exemption for cloud software transactions.
Helpful Links
We’ve gathered some websites that may be helpful in finding answers to your sales tax questions or addressing your sales tax needs.
Tax Software
Find tax software providers that handle tax compliance, calculation and other sales tax issues. These providers offer a range of sales and use tax related services, including exemption certificate management, rate lookup tools, and more.
Sales Tax FAQs
Explore commonly asked questions about sales and use tax. A great starting place to learn about fundamental sales tax concepts and general applications to business.
Wisconsin Sales Tax on Internet Access Charges Repealed Effective July 1, 2020
Wisconsin’s sales tax on internet access charges is repealed as part of the state’s enacted budget bill, effective July 1, 2020 and due to a permanent extension of the Internet Tax Freedom Act.
The Internet of Things: What Is It and How Should It Be Taxed?
The Internet of Things can be summed up as a network of “intelligent,” connected devices that generate data for automating business processes and enabling new services.
Sales of Banking Software Not Taxable in Indiana
Online banking, online bill payment, and mobile banking products sold to financial institutions are considered nontaxable services in Indiana, and are not subject to sales or use tax.
Software Exemptions That You Might Not Think Of
In this blog post, we discuss three different types of software exemptions that may be available in some states.
Report Fees Paid to Third-Party Software Provider Taxable in Tennessee
A taxpayer that provides transcription services to clients is subject to Tennessee sales and use tax on report fees paid to a third-party software provider.
Pennsylvania Issues Revised Ruling on Software Support Services
The Pennsylvania Department of Revenue clarified its position regarding the taxability of consulting and training services related to canned computer software and its definition of “support” on April 4, 2017.
New York Announces Cap for Sales Tax Exemption for Electronic News Services
New York provides an exemption from sales and use taxes on certain electronic news services. To qualify for the exemption, the service must be sold at or below a cap amount.
Specified Digital Products and Digital Codes are Subject to Arkansas Sales Tax, Effective January 1, 2018
Effective January 1, 2018, Arkansas sales and use tax applies to specified digital products sold to a purchaser who is an end user with the right of permanent or less than permanent use granted by the seller.
Network Infrastructure Service Exempt as Internet Access Services in Pennsylvania
A Pennsylvania court reaffirmed its decision that a provider’s sales of network infrastructure services to retail internet service providers constitute internet access services and are therefore tax-exempt.
California Increases Electronic Waste Recycling Fees
California approved an increase in the electronic waste recycling (eWaste) fee rates for all covered electronic devices. Effective January 1, 2017, the eWaste fee increases for all covered electronic devices.
SaaS Considered Service Occupation in IL with Tax Implications for Downloaded Component
In two General Information Letters, the Illinois Department of Revenue took the position that a Software as a Service provider is a serviceman and therefore subject to the Service Occupation Tax.
Online Backup Software Not Taxable in Indiana
An information technology company was not liable for additional Indiana sales tax on online backup software it provided to its clients since the software was incidental to the company’s provision of online backup subscription services.
Virginia Sales Tax Exemption for Internet Services Must be Claimed as Refund Request
Sales and use tax exemptions applicable to production, distribution, and other equipment used to provide internet access services by internet service providers must be claimed as a refund request to the Tax Commissioner.
California Amends Regulation for Newspapers and Periodicals
California amended a regulation regarding newspapers and periodicals to clarify how sales and use tax apply to lump-sum charges for mixed newspaper subscriptions that include the right to access digital content.