Kentucky Changes Filing Thresholds and Adds Exemptions

Kentucky enacted legislation effective July 15, 2024, that expands sales tax exemptions and changes definitions and filing thresholds.

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.

Texas Issues Letter Ruling Providing Guidance on Various Website-Related Services

The Texas Comptroller has issued a private letter ruling in response to a taxpayer’s request regarding the taxability of website design, development, marketing, and advertising services.

New York Upholds Advertising Analysis Service as Taxable Information Service

The Appellate Division, Third Department, of the state of New York has upheld a Tax Appeals Tribunal Ruling that a business that creates and provides recommendations based on data from advertising campaigns is providing taxable information services.

Arkansas Rules Artificial Turf Installation to Not Be Taxable Landscaping

Arkansas Tax Appeals Commission determined that a company\’s installation and repair of artificial turf for athletic fields did not qualify as a taxable landscaping service.

Nebraska Expands Sales Tax Exemptions: Supporting Non-Profits, Agriculture, and Construction

Overall, these changes aim to support specific sectors of the economy, reduce financial burdens on certain organizations, and streamline processes for construction projects.

Iowa Sales and Use Tax Exemption for Certain Purchases of Computers Ending in 2024

Starting January 1, 2024, there will be changes to Iowa\’s sales tax exemptions for certain businesses buying computers and computer peripherals.

How To: Determine Sales Tax Sourcing for Services

It’s daunting to figure out where you have sales tax obligations. And when you are a service provider, the responsibility grows even more complicated! If you have physical or economic nexus in the states that tax services across the country,…

Staffing and Payment Processing Services Provided Through Digital Platform are Not Taxable in Tennessee

Staffing augmentation and payment processing services provided by an out-of-state technology company are not subject to sales and use tax in Tennessee.

Texas Clarifies Sales Tax Obligations of Employee Benefit Plan Administrators

In a recent letter ruling, Texas outlined which parts of the services offered by a company that designs and administers employee healthcare and retirement plans for employers are subject to sales tax.

South Dakota Department of Revenue Updates Sales Tax Guidelines for Attorney Services

In July 2023, the South Dakota Department of Revenue initially published a Tax Fact bulletin specific to attorney services and the applicability of sales and use tax.

Virginia Enacts New Sales Tax Exemption for Auto Repair Diagnostic Work and Emergency Roadside Service

Effective July 1, 2023, Virginia has enacted legislation that creates a sales and use tax exemption for amounts separately charged for labor rendered in connection with diagnostic work for automotive repair and emergency roadside service for motor vehicles, regardless of whether there is a sale of a repair or replacement part or a shop supply charge.

Tennessee Rules Membership Fees from Online Exercise Classes Are Taxable

The Tennessee Department of Revenue ruled that membership fees charged from a home exercise equipment company are subject to the state’s sales and use tax.

Texas Excludes Furnishing of Academic Transcript from Definition of Information Services

Effective October 1, 2023, Texas has amended the definition of “Information service” for purposes of sales and use tax to exclude the furnishing of an academic transcript.

Key Sales Tax Updates Affecting the Mid-Atlantic

To help those with business operations in the Mid-Atlantic or those who make sales into Mid-Atlantic states keep up, we’re putting a magnifying glass on some of the key recent sales tax changes.

Utah Legislation Updates Peer-to-Peer Car-Sharing Regulations

A recently enacted Utah bill changes how motor vehicles involved in car-sharing platforms are taxed.

Mississippi Imposes Tax on Computer Software with Exemption for Out-of-State Storage

Mississippi Governor Tate Reeves signed S.B. 2449 into law on March 28, requiring sales and use tax to be charged on computer software and services. This law also entails an exemption for any software that is stored outside the state. The law goes into effect on July 1, 2023.

Washington Finds Utilities Meter Data Management Service to be Exempt

A Washington appellate court has ruled against the state Department of Revenue and a lower court\’s summary judgement, and ruled in favor of a company that collects and transmits data for Washington-based power companies.

Federal Contractor Required to Pay Washington Use Tax on Design and Engineering Costs Associated with Government Contract

The Court of Appeals of Washington determined that Alstom Power Inc. was required to pay Washington use tax for a turbine rehabilitation project.

Collection and Remittance of Tax on Credit Rating Services for Legal Entities Begins July 1, 2023 in Texas

The Texas Comptroller of Public Accounts has issued a policy letter stating that the provision of credit rating services for legal entities is subject to sales and use tax, and taxpayers must begin collecting and remitting tax on these services beginning July 1, 2023.

Tennessee Passes Legislation Regarding Taxing Temporary Services

Companies doing business in Tennessee and seeking the aid of temporary workers should carefully review job postings, with the understanding that other than this in-house exemption, the services of individuals related to software may be taxed.

Minnesota Updates Sales Tax Facts on Detective and Security Services

Minnesota has made general updates to a Sales Tax Fact Sheet 114 that provides guidance regarding detective and security services.

Hawaii Updates Guidance on GET for Medical and Dental Services

Hawaii Department of Taxation issued Tax Facts 98-1 updating its information on the general excise tax (GET) as it applies to medical and dental services.

North Carolina Issues Guidance on Dry-Cleaning Solvent Tax

North Carolina imposes a privilege tax on dry-cleaning solvent retailers at a flat rate for each gallon of dry-cleaning solvent sold to a dry-cleaning facility. An excise tax is imposed on dry-cleaning solvent purchased for storage, use, or consumption by a dry-cleaning facility in North Carolina.