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.

New York Upholds Advertising Analysis Service as Taxable Information Service

The Appellate Division, Third Department, of the state of New York has upheld a Tax Appeals Tribunal Ruling that a business that creates and provides recommendations based on data from advertising campaigns is providing taxable information services.

Board of Tax Appeals Rules Video Programming is Not Taxable Tangible Personal Property in Louisiana

The Louisiana Board of Tax Appeals granted summary judgment in favor of the taxpayer in an order dated March 14, 2024, in the case DirecTV LLC v. City of Baton Rouge, Docket No. L01329.

Iowa Sales and Use Tax Exemption for Certain Purchases of Computers Ending in 2024

Starting January 1, 2024, there will be changes to Iowa\’s sales tax exemptions for certain businesses buying computers and computer peripherals.

Streaming Platform Subject to Tax in Utah Due to Use of Bundled Transactions

An Administrative Law Judge for the Utah State Tax Commission released an order on Utah Appeal case 22-1274 upholding the decision of the Utah State Tax Business Taxes and Discovery Division of the Utah State Tax Commission (the Division) to charge a streaming platform (the Taxpayer) sales and use tax on their offerings.

Michigan’s Data Center Tax Reporting: What You Need to Know

Michigan\’s Treasury Department now requires data center operators claiming sales or use tax exemptions for equipment sales or purchases to report annually using Form 5726.

Digital Products Subject to Georgia Sales and Use Tax Effective January 1, 2024

Sales of specified digital products, other digital goods and digital codes sold to an end user in Georgia are subject to Georgia sales and use tax, provided that the end user receives or will receive the right of permanent use of such products, goods, or codes and the transaction is not conditioned upon continued payment by the end user.

British Columbia Supreme Court Rules Amazon Web Services Not Subject to PST

Supreme Court of British Columbia ruled to Canadian social media company Hootsuite that certain Amazon Web Services (AWS) technical support and cloud products are not classified as software programs, and therefore are not subject to British Columbia’s 7% provincial sales tax.

T-Mobile Granted Sales Tax Refund on Sales of Electronically Delivered Software in Florida

An entity of T-Mobile was granted a $5.6 million Florida sales tax refund for sales of electronically delivered software to a T-Mobile affiliate.

Michigan Issues Bulletin Addressing Digital Goods

Michigan issued a revenue administrative bulletin (RAB 2023-10) addressing the taxation of computer software and digital products.

Arizona Appeals Court Re-Affirms State Position on Remote Software Licensing

The Arizona Court of Appeals ruled in favor of the Department of Revenue, rejecting a refund request from an HR software company that challenged the taxation of their sales of software licenses.

Staffing and Payment Processing Services Provided Through Digital Platform are Not Taxable in Tennessee

Staffing augmentation and payment processing services provided by an out-of-state technology company are not subject to sales and use tax in Tennessee.

Louisiana City Cannot Charge Franchise Fees on Streaming Services

The City of Kenner, Louisiana, cannot sue Netflix and Hulu for franchise fees for providing video content via the Internet.

Washington Releases Guidance for Data Center Exemption Expiration Dates

The Washington Department of Revenue has released an Excise Tax Advisory providing further detail about the duration of the state\’s data center sales and use tax exemptions.

Tennessee Rules Membership Fees from Online Exercise Classes Are Taxable

The Tennessee Department of Revenue ruled that membership fees charged from a home exercise equipment company are subject to the state’s sales and use tax.

Arkansas Enacts Exemption for Qualifying Data Centers

Arkansas has enacted legislation that creates a sales and use tax exemption for qualifying data center equipment and costs and certain services provided to a data center.

Texas Non-Profit’s Sales of Learning System, Subscriptions, and Membership Dues are Exempt

A non-profit professional healthcare organization’s sales of a learning system, subscriptions to its journal, and annual membership dues were exempt from Texas sales and use tax.

Mississippi Imposes Tax on Computer Software with Exemption for Out-of-State Storage

Mississippi Governor Tate Reeves signed S.B. 2449 into law on March 28, requiring sales and use tax to be charged on computer software and services. This law also entails an exemption for any software that is stored outside the state. The law goes into effect on July 1, 2023.

Washington Finds Utilities Meter Data Management Service to be Exempt

A Washington appellate court has ruled against the state Department of Revenue and a lower court\’s summary judgement, and ruled in favor of a company that collects and transmits data for Washington-based power companies.

Illinois Issued a Letter Discussing Taxability of Various Digital Goods

The Illinois Department of Revenue issued a general information letter encompassing the applicability of sales and use tax to the sales of various digital goods by a digital goods distributor (taxpayer).

Louisiana Board of Tax Appeals Rules ITFA Prohibits Taxing Cloud Storage

After performing an audit on Apple, the City of New Orleans issued an assessment on September 20, 2021, which included almost $136,000 in taxes on subscription fees for Apple’s iCloud, which Apple challenged.

Texas Letter Ruling Says Audiovisual and Videoconferencing Equipment and Services are Subject to Tax

The Texas Comptroller released a Letter Ruling on January 3, 2023, which found that a taxpayer’s audiovisual and videoconferencing equipment and the related services, both on-site and remote, are taxable under Texas law.

Florida State Law on Refunds and Over-collection

A Florida judge determined that Oracle America, a software company, was ineligible for a tax refund filed with the state after the tax was over-collected.

Indiana Updates Computer Software Guidance Document

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.