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.
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).
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.
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).
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.
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 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.
Iowa has provided guidance regarding the state’s sales tax exemption for computers and computer peripherals.
Kentucky has stated that the state’s sales and use tax exemptions for traditional manufacturing do not apply to block chain production.
Colorado has clarified the state’s treatment of digital goods as generally constituting tangible personal property that is subject to sales tax.
The Wisconsin Department of Revenue has issued guidance on the sales tax treatment of educational items, including online learning and digital books and videos.
Effective January 1, 2021, Chicago’s Personal Property Lease Transaction Tax increases from 7.25% to 9% on charges for cloud services
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.
The Kansas Department of Revenue has issued guidance regarding the sales tax treatment of transactions related to digital currency.
The Tennessee DOR has added three new FAQs to its website discussing the taxability of pre-recorded videos of online courses.
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.
A taxpayer that installs custom automated home theaters, speakers, lighting, and security systems was properly assessed sales tax on programming and trip charges.
The Arkansas Department of Finance and Administration has issued guidance regarding the taxability of services provided virtually.
Effective retroactively to October 1, 2019, North Carolina has enacted sales and use tax exemptions for certain digital goods.
Effective July 1, 2020, charges for internet access are no longer subject to Ohio sales and use tax.
Effective July 1, 2020, separately stated charges for internet access are no longer subject to Texas sales tax.
Effective July 1, 2020, charges for internet access are no longer subject to South Dakota state and municipal sales tax.
Effective July 1, 2020, North Carolina has expanded its large fulfillment facility exemption.
Effective July 1, 2020, charges for internet access services are no longer subject to Wisconsin sales and use tax.
Effective July 1, 2020, Maryland has enacted a sales and use tax exemption on certain personal property for qualified data centers.