News & Tips

Here you can read up on significant developments in the world of sales and use tax. Find the latest legislative updates and helpful tips to keep you in compliance across all 50 states. You can filter news items by topic and/or a jurisdiction of interest.

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.

Chicago Updates Cloud and Software Lease for Release Rule

Chicago modified its application of the lease for re-lease exemption to include certain software and cloud products, effective July 1, 2020.

Software Subscription Services Subject to Tax in South Carolina

South Carolina has issued a private letter ruling regarding the application of sales and use tax to a cloud-based software subscription service.

Online Software Subscription Fees Taxable in Massachusetts

Massachusetts found that a taxpayer’s subscription fees for online software products are subject to sales tax as sales of tangible personal property.

Sales and Installation of Computer Cabling Are Exempt in Ohio

Effective October 22, 2019, sales and installation of computer cabling are exempt from Ohio sales and use tax but the contractor owes use tax on the cost of the materials installed into real property.

Utah Repeals Legislation that Expanded Taxation to Specified Services, Repealed and Created Exemptions

Effective January 29, 2020, Utah enacted legislation that repeals previously enacted legislation, S.B. 2001, that included expansion of taxability to specified services, the elimination of sales tax exemptions, the creation of new sales tax exemptions, and more.

Video Streaming Services Subject to Tax in Kentucky

Effective July 1, 2019, video streaming services are subject to Kentucky excise tax and gross receipts taxes as taxable “multichannel video programming services.”

Chicago Increases Personal Property Lease Transaction Tax, Effective January 1, 2020

Effective January 1, 2020, Chicago’s Personal Property Lease Transaction Tax increases from 5.25% to 7.25% on charges for cloud services.

Point-of-Sale Services Subject to Washington Sales and Use Tax

The purchase of point-of-sale (POS) services by a taxpayer was subject to Washington sales and use tax as taxable digital automated services.

District of Columbia Repeals Sales Tax Exemption for Qualified High Technology Companies

Effective October 1, 2019, D.C. has repealed two sales and use tax exemptions for purchases and sales by Qualified High Technology Companies.

Washington Issues Guidance on Taxability of Bitcoin-Related Activities

The Washington Department of Revenue has issued a statement regarding the taxability of bitcoin-related activities.

Connecticut Increases Tax Rate on Most Digital Goods and Certain Software

The sales and use tax rate on digital goods and certain software will increase to 6.35%, effective October 1, 2019.

North Carolina Expands Applicability of Sales Tax to Digital Property

Effective October 1, 2019, North Carolina enacted legislation that expands the applicability of sales tax to digital property.