Software/Hi-Tech

Canadian Laws for Non-Resident Vendors of Digital Products and Services, Users of Fulfillment Warehouses, and Short-Term Rentals Come into Effect

On July 1, 2021, three new measures created under Bill C-30 came into effect requiring non-resident businesses to begin collecting GST/HST on sales of digital goods and sales made through digital platforms.

Massachusetts Rules Software Apportionment Rules Can Be Used for Abatement and Refunds

On May 21, 2021, the Supreme Judicial Court of Massachusetts upheld an appeals court ruling that the Commonwealth\’s rules allowing for apportionment of software for sales tax can be used for abatement after the tax has already been paid.

New York Releases Advisory Opinion on Software and Consulting Services

In an Advisory Opinion dated November 17, 2020, the New York Commissioner clarified their position on the taxability of consulting services that provide access to online customer portals.

Colorado Enacts New Legislation Codifying Treatment of Digital Goods as Tangible Personal Property

On June 23, 2021, the Governor of Colorado signed H.B. 1312, officially bringing the law in line with the state\’s practice of applying sales and use tax to digital goods.

North Carolina Provides Guidance About Taxability of Certain Digital Property to Taxpayer

A North Carolina company provides subscriptions to industry specific information in their cloud which customers can access by paying for a subscription.

Maryland Expands Tax on Digital Goods

Effective March 14, 2021, the sale of canned or commercial off-the-shelf software obtained electronically is considered a digital good and is subject to Maryland sales and use tax, as well as the sale of electronically delivered software and software as a service (SaaS).

Iowa Adopts New Rules Related to Bundled Transactions and Specified Digital Products

The Iowa Department of Revenue adopted new rules on bundled transactions and specified digital products to fully implement the language and definitions part of legislation enacted in 2018.

Taxpayer‘s Online Webcasting and Virtual Communication Solution Not Subject to New York Sales Tax

A taxpayer’s cloud-based webcasting and virtual communications solution was not found subject to sales tax in New York.

New York Clarifies that Certain Database Service is not Subject to Sales Tax

The New York Commissioner of Tax and Finance advised a petitioner that their reports of individual consumer data, which is provided only for the specific consumer to see, is not subject to sales tax.

North Carolina Rules Subscription Fees for SaaS Not Subject to Sales Tax

In response to a taxpayer request, the North Carolina Department of Revenue completed a private letter ruling regarding sales tax payments on subscription fees for software as a service (SaaS).

North Carolina Letter Ruling Addresses Taxation of Cloud-Based Software Application Access

The North Carolina Department of Revenue issued a private letter ruling to address the taxability of a taxpayer’s free application that is part of its web-based services provided via a software as a service (SaaS) model.

How States Will Use Sales Tax to Recover Lost Revenue from the Pandemic

Learn three sales tax trends states are turning to to expand their tax bases, bring in new taxpayers, and generate more revenue.

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.

Services to Measure Advertising Effectiveness Are Taxable in New York

A taxpayer’s services to measure the effectiveness of advertising were subject to New York sales and use tax since they qualify as taxable information services.

Apple Amends and Expands Complaint Against Chicago Streaming Tax

Apple expanded its claim that Chicago’s streaming tax violates the U.S. Constitution’s due process and commerce clauses by including their streaming services in the city’s 9% amusement tax.

Iowa Provides Guidance on Exemption for Computers and Computer Peripherals

Iowa has provided guidance regarding the state’s sales tax exemption for computers and computer peripherals.

Manufacturing Exemptions Do Not Apply to Block Chain in Kentucky

Kentucky has stated that the state’s sales and use tax exemptions for traditional manufacturing do not apply to block chain production.

Colorado Amends Administrative Rule to Clarify Taxation of Digital Goods

Colorado has clarified the state’s treatment of digital goods as generally constituting tangible personal property that is subject to sales tax.

Wisconsin Issues Guidance on Taxability of Educational Products, Goods and Services

The Wisconsin Department of Revenue has issued guidance on the sales tax treatment of educational items, including online learning and digital books and videos.

Chicago Increases Personal Property Lease Transaction Tax, Effective January 1, 2021

Effective January 1, 2021, Chicago’s Personal Property Lease Transaction Tax increases from 7.25% to 9% on charges for cloud services

IT Service Agreement Taxable as Service Contract in North Carolina

An IT provider’s service agreements were subject to North Carolina sales and use tax since the agreements met the definition of a taxable service contract.

Kansas Provides Guidance on Taxation of Digital Currency

The Kansas Department of Revenue has issued guidance regarding the sales tax treatment of transactions related to digital currency.

Taxing Digital Goods and Services: Recent Shifts and Trends

Who remembers Blockbuster, CD’s, and physical newspapers? We are a dwindling group of people as we’re in a digital age where a majority of the entertainment and news we consume is online or downloaded to our devices. Since people spent…

Tennessee Issues Guidance on Taxability of Pre-Recorded Videos of Online Courses

The Tennessee DOR has added three new FAQs to its website discussing the taxability of pre-recorded videos of online courses.