The Illinois Department of Revenue ruled that a taxpayer providing software subscriptions and hardware for a bundled price is subject to the Service Occupation Tax, but not Retailers’ Occupation Tax, Use Tax, or Service Use Tax.
Iowa Adds Guidance About Sales Tax for Web Hosting Services
The Iowa Department of Revenue issued guidance stating that web hosting is not taxable as a service in the state.
Tennessee Rules Online Cloud-Based Platforms Not Taxable
The Tennessee Department of Revenue ruled that a company with two offerings on a cloud-based platform are nontaxable.
Mississippi Amends Tax Treatment of Cloud Computing
The Mississippi Department of Revenue has proposed amendments to their regulations for the tax treatment of computer equipment, software, and certain related services.
California State Court Rules that Local Video Service Provider Fees Do Not Apply to Streaming Video Providers
The California court made their decision in line with Nevada’s similar case which ruled that streaming video providers are not subject to local franchise fees.
Texas Court Dismisses Local Franchise Fee Suit Against Streaming Companies
The City of New Boston, TX filed a suit against Hulu and other streaming services claiming that they owed local franchise fees.
Colorado Department of Revenue Issues Conclusion on Sales and Use Tax for Online Education Platforms
In a recent private letter ruling, the Colorado Department of Revenue concluded that subscription fees for online learning platforms are subject to the state’s sales tax and state-administered local sales tax.
Hawaii Clarifies Sales Tax Treatment of Software
The Hawaii Department of Taxation issued a release to clarify the treatment of sales of software with regards to their general excise tax (GET).
Washington Provides Clarity on Application of Sales and B&O Tax to Online Classes
The state of Washington has published an article clarifying the application of sales and business and occupational taxes to providers of online classes.
Kentucky Enacts Manufacturing Electricity Exemption for Mining of Cryptocurrency
On July 1, 2021, the state of Kentucky enacted a new sales tax exemption for electricity that is used or consumed in the commercial mining of cryptocurrency.
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.
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.