Software/Hi-Tech

Oklahoma Enacts Exemption for Machinery Used in Digital Asset Mining

Oklahoma has enacted a sales tax exemption for sales of machinery and equipment and electricity used for commercial mining of digital assets purposes in a colocation facility.

Vermont Repeals Exemption on Cloud Software Effective July 1, 2024

The Vermont Legislature has overridden a veto by Governor Phil Scott to enact legislation that repeals the state’s sales and use tax exemption for remotely accessed prewritten computer software, commonly referred to as cloud software.

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.

Virginia Budget Updated for Sales Tax Expansion to Digital Goods

Virginia Governor Glenn Youngkin signed the state budget bills, H.B. 6001 and H.B. 6002, on May 13.

Subscription-Based Membership Fee Not Taxable in Colorado

The Colorado Department of Revenue has issued a private letter ruling regarding the taxability of subscription-based membership fees, the primary benefit of which is to provide the purchaser with free delivery.

Washington Clarifies Sales and Use Tax for Live Online Classes

As of February 7, 2024, Washington State has provided guidance on the taxability of live online classes.

Music Streaming in New Orleans, Louisiana Deemed Not Taxable Under Internet Tax Freedom Act

The Louisiana Board of Tax Appeals (Board) ruled that music streaming services provided by Apple (Apple Music) are not subject to tax in New Orleans (City) under the Internet Tax Freedom Act (ITFA).

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.

Board of Tax Appeals Rules Video Programming is Not Taxable Tangible Personal Property in Louisiana

The Louisiana Board of Tax Appeals granted summary judgment in favor of the taxpayer in an order dated March 14, 2024, in the case DirecTV LLC v. City of Baton Rouge, Docket No. L01329.

Your Guide to Sales Tax in the Midwest

To catch you up and cut down your research time, we’ve compiled some of the essential Midwestern sales tax trends for 2024 that you need to know.

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.

Streaming Platform Subject to Tax in Utah Due to Use of Bundled Transactions

An Administrative Law Judge for the Utah State Tax Commission released an order on Utah Appeal case 22-1274 upholding the decision of the Utah State Tax Business Taxes and Discovery Division of the Utah State Tax Commission (the Division) to charge a streaming platform (the Taxpayer) sales and use tax on their offerings.

Michigan’s Data Center Tax Reporting: What You Need to Know

Michigan\’s Treasury Department now requires data center operators claiming sales or use tax exemptions for equipment sales or purchases to report annually using Form 5726.

Key Sales Tax Updates Affecting the Southeastern United States

Picture this: an evolving sales tax landscape throughout the United States where sales tax rules resemble a puzzle, and being up to date on the Southeast region is the missing piece for compliance success.

Digital Products Subject to Georgia Sales and Use Tax Effective January 1, 2024

Sales of specified digital products, other digital goods and digital codes sold to an end user in Georgia are subject to Georgia sales and use tax, provided that the end user receives or will receive the right of permanent use of such products, goods, or codes and the transaction is not conditioned upon continued payment by the end user.

British Columbia Supreme Court Rules Amazon Web Services Not Subject to PST

Supreme Court of British Columbia ruled to Canadian social media company Hootsuite that certain Amazon Web Services (AWS) technical support and cloud products are not classified as software programs, and therefore are not subject to British Columbia’s 7% provincial sales tax.

T-Mobile Granted Sales Tax Refund on Sales of Electronically Delivered Software in Florida

An entity of T-Mobile was granted a $5.6 million Florida sales tax refund for sales of electronically delivered software to a T-Mobile affiliate.

Michigan Issues Bulletin Addressing Digital Goods

Michigan issued a revenue administrative bulletin (RAB 2023-10) addressing the taxation of computer software and digital products.

Arizona Appeals Court Re-Affirms State Position on Remote Software Licensing

The Arizona Court of Appeals ruled in favor of the Department of Revenue, rejecting a refund request from an HR software company that challenged the taxation of their sales of software licenses.

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.

Louisiana City Cannot Charge Franchise Fees on Streaming Services

The City of Kenner, Louisiana, cannot sue Netflix and Hulu for franchise fees for providing video content via the Internet.

Washington Releases Guidance for Data Center Exemption Expiration Dates

The Washington Department of Revenue has released an Excise Tax Advisory providing further detail about the duration of the state\’s data center sales and use tax exemptions.

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.