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.
Cloud & Software Taxation After South Dakota v. Wayfair
States have been tackling taxation of software and the cloud for quite some time and this trend has continued post-South Dakota v. Wayfair. In fact, a number of major pieces of legislation have become effective post-Wayfair across the states. Let’s…
Midwest State Tax Updates You May Have Missed
In sales tax, legislative updates and law changes are a constant. It is virtually impossible to keep up with all of the changes taking place in the states where you conduct business, especially if there are more than one. But…
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.
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.
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.
Online Subscription-Based Educational Curriculum Not Taxable in Texas
Sales of an online subscription-based educational curriculum were exempt from Texas sales and use tax since the curriculum is primarily instructional in nature.
Software Maintenance Services Not Subject to Colorado Sales and Use Tax
A company’s charges for computer program maintenance services were not subject to Colorado sales or use taxes.
Online Educational Services Not Subject to Indiana Sales Tax
An out-of-state taxpayer’s online educational services were not subject to tax because they were considered remotely accessed software.
Iowa Expands Tax Base to Include Additional Specified Services
Iowa has enacted legislation that expands the state’s tax base to include additional specified services, effective January 1, 2019.
Sales of Digital Goods Taxable in District of Columbia
Effective January 1, 2019, sales of digital goods into the District of Columbia are subject to sales and use tax.
Use of Cloud Software Services via Hotel Internet Exempt in Indiana
Indiana has updated guidance regarding sales tax for hotels, motels and lodging establishments to reflect legislative changes regarding cloud computing.
Royalties Paid for Intellectual Property Exempt in Pennsylvania
Royalties paid for intellectual property used in operating video game machines in a casino resort were exempt from Pennsylvania sales and use tax.
Software as a Service Taxable in Rhode Island, Effective October 1, 2018
Effective October 1, 2018, Software as a Service (SaaS) is subject to Rhode Island sales and use tax.
Mobile Application Program and Bundled Services Subject to Texas Sales Tax
In a private letter ruling, the Texas Comptroller found a taxpayer’s mobile application program and bundled services taxable as data processing services.
Cloud-Based Website Hosting Services Taxed in Texas
Texas Comptroller deemed a corporation’s cloud-based website hosting services taxable as data processed for customers located within Texas in a private letter ruling.
Arkansas Issues Guidance on Taxability of Digital Subscriptions
Arkansas has issued an opinion discussing the taxability of digital subscriptions.
Membership Subscription Fees for Legal Support Services Subject to Texas Sales Tax
Membership subscription fees for legal support services were subject to Texas sales and use tax since the seller included them in a lump-sum fee which included payment for the license of document drafting software.
Iowa Expands Tax Base to Include Specified Digital Products
Iowa has enacted legislation that subjects specified digital products and services to state sales and use tax with exemptions for use by commercial enterprises.
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.