The state of Indiana has released an update to their Information Bulletin #8, which addresses the specific tax treatment of computer hardware, software, and digital goods.
California Issues Guidance on Taxability of Cryptocurrency
The California Department of Tax and Fee Administration (CDTFA) has issued guidance on the sales and use tax treatment of cryptocurrency.
Maryland Tax Court Allows Apple’s Challenge to Digital Advertising Tax to Move Forward
The Maryland Tax Court has denied the Comptroller of Maryland\’s motion to dismiss Apple Inc\’s refund claim for Digital Advertising Taxes paid, allowing the case to move forward in the appeals process.
Taxing Digital Goods and Services: Recent Shifts and Trends
Let’s take a look at recent legislation states have put on the books and delve into new trends in digital goods and what to watch for in our virtual-driven world.
Tennessee Issues Letter Ruling Clarifying Advertising Services vs Computer Software
Tennessee issued a letter ruling stating tax should be paid on a subscription-based product which allows users to create and manage advertisements for rental properties.
Tennessee Letter Ruling on Data Processing Service
Tennessee issued a letter ruling clarifying that a company headquartered within Tennessee is not subject to Tennessee sales and use tax.
Streaming Company’s Platform Credits Not Taxable in Colorado
Colorado has issued a private letter ruling stating that “platform credits” offered by a company that offers video streaming services are not subject to Colorado sales tax.
Wisconsin Issues Guidance on Tax Treatment of Non-Fungible Tokens
Wisconsin has issued guidance on the taxability of non-fungible tokens (NFTs) in its most recent monthly tax bulletin.
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.
Minnesota Adds NFT Clarifications to Digital Product Sales Tax Fact Sheet
Minnesota has provided clarity to the taxability of non-fungible tokens (NFTs) due to an increase in use. NFTs entitle the purchase of goods and services, according to the recently updated fact sheet, when NFTs are used to purchase taxable products.
Washington issues interim statement regarding the taxability of non-fungible tokens
Purchases of non-fungible tokens, or NFTs, are taxable in most cases and sellers of NFTs are subject to Washington business and occupation (B&O) tax on gross proceeds, according to an interim statement provided by the Washington Department of Revenue in July.
Challenge to Chicago’s streaming tax settled between the city and Apple
Apple and Chicago agreed to settle a lawsuit claiming the city’s 9% streaming tax was unconstitutional.
Maryland Updates Digital Products Definition with New Exclusions
On July 1, 2022, Maryland changed the definition of a digital product to make application of sales and use tax exclude certain products.
Washington Taxes Account Access Services
The Washington Department of Revenue (DOR) denied a company seeking to claim sales tax exemptions for their account access services to credit unions.
Virginia Expands Sales Tax Exemption for Network Equipment
The Governor of Virginia, Glenn Youngkin, has signed H.B. 1155, which expands the sales and use tax exemption on equipment that is used to provide internet services.
State of Connecticut Rules Online Learning Plans Not Taxable as Digital Goods
On April 21, 2022, the Connecticut Department of Revenue issued Ruling No. 2022-2 determining that online learning plans are not taxable digital goods.
Service Providers: Don’t Assume You Are Always Tax-Free!
Service providers—especially in the professional services realm—can be quick to assume that their services are nontaxable and that they do not need to collect sales tax and remit sales tax on their sales of services.
Texas Rules Loan Document Packages Subject to Sales Tax
The Texas Court of Appeals ruled that a law firm’s purchases of packages containing the legal documents necessary to execute residential mortgage loans should be classified as purchases of data processing services, which is subject to sales tax.
Washington Subjects Computer Storage Space to B&O Tax
The Washington Department of Revenue determined that a taxpayer providing customers space in a secure facility in which to store computer equipment and pair it with internet access services is subject to the state’s Business & Occupation (B&O) tax.
Illinois Clarifies Taxation of Software as a Service
The Illinois Department of Revenue has issued a private letter ruling regarding the taxation of software as a service and cloud-based remote work tools.
New York Grants Sales Tax Refund to Online Loan Marketplace
A New York taxpayer, an online loan marketplace, filed a petition against the Department of Revenue for a sales tax refund from the state since its primary function is not as an information services provider.
The European Union’s Proposed Digital Levy Due to be Removed
The European Union had a proposed digital levy that would help fund the region’s recovery from the COVID-19 pandemic and due to historic bond borrowing.
California Clarifies Sales Tax for Mixed Newspaper Subscriptions
California now requires publishers to determine if their newspaper sales are considered mixed newspaper subscriptions due to its effect on sales tax.
Texas Determines the Sales and Use Tax Treatment of a Mobile Ordering Application Platform
In a private letter ruling, the Texas Comptroller clarified the sales and use tax requirements for a mobile ordering application platform where restaurants receive food orders.