Software/Hi-Tech

Sales Tax FAQs

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.

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…

Not-To-Be-Missed Sales Tax Updates out of the Midwest

When it comes to sales tax, there is no such thing as “fly over country.” If you have business operations in the Midwest or make sales into Midwestern states, you must stay on top of sales tax changes that impact…

Delivery Method Changes Everything: Navigating Sales Tax on Intangible Goods

Explore cases where seemingly intangible goods can be converted to tangible personal property for sales tax purposes.

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.

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.

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.

Backup Service Exempt as Nontaxable Computer Software and Related Services in Colorado

Colorado has issued a private letter ruling stating that sales of a backup service provided by an information technology provider are not subject to tax.

Programming and Trip Charges Subject to Tax in Virginia

A taxpayer that installs custom automated home theaters, speakers, lighting, and security systems was properly assessed sales tax on programming and trip charges.

Arkansas Issues Guidance on Taxability of Virtual Services

The Arkansas Department of Finance and Administration has issued guidance regarding the taxability of services provided virtually.

North Carolina Enacts Exemptions for Certain Digital Goods

Effective retroactively to October 1, 2019, North Carolina has enacted sales and use tax exemptions for certain digital goods.

Ohio Issues Guidance on Taxability of Electronic Information Services

Effective July 1, 2020, charges for internet access are no longer subject to Ohio sales and use tax.

Internet Access Service Charges Exempt in Texas Beginning July 1, 2020

Effective July 1, 2020, separately stated charges for internet access are no longer subject to Texas sales tax.

Internet Access Service Charges Exempt in South Dakota Beginning July 1, 2020

Effective July 1, 2020, charges for internet access are no longer subject to South Dakota state and municipal sales tax.

North Carolina Expands Large Fulfillment Facility Exemption

Effective July 1, 2020, North Carolina has expanded its large fulfillment facility exemption.

Internet Access Service Charges Exempt in Wisconsin Beginning July 1, 2020

Effective July 1, 2020, charges for internet access services are no longer subject to Wisconsin sales and use tax.

Maryland Enacts Sales Tax Exemption for Qualified Data Centers

Effective July 1, 2020, Maryland has enacted a sales and use tax exemption on certain personal property for qualified data centers.

Indiana’s Temporary Storage Exemption Does Not Apply to Taxpayer’s Purchase of Computer Software

A taxpayer was denied a refund of Indiana sales tax paid on purchases of computer software delivered to Indiana since Indiana does not offer a temporary storage exemption for sales tax.