A private letter ruling by the Texas Comptroller of Public Accounts found in favor of a taxpayer, defining its payment card management (PCM) program as a nontaxable payment processing service, not a taxable data processing service.
Subscriptions to online learning services are not taxable in the state of Texas, according to a July ruling in a private letter published by the state comptroller, but planning services purchased by teachers are subject to tax.
Service providers—especially in the professional services realm—can be quick to assume that their services are nontaxable and that they do not need to collect sales tax and remit sales tax on their sales of services.
The Texas Court of Appeals ruled that a law firm’s purchases of packages containing the legal documents necessary to execute residential mortgage loans should be classified as purchases of data processing services, which is subject to sales tax.
Tennessee has enacted a sales and use tax exemption for qualified film or television production costs provided the Commissioners of Revenue and Economic and Community Development determine that the exemption is in the best interests of the state (such as jobs created or community impact).
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.