The Board of Finance and Revenue of Pennsylvania recently reviewed petitions filed by One Market Data LLC, challenging the revocation of its sales tax license and the assessment of tax, penalties, and interest for the period between January 2020 and December 2022. The company argued that its services were nontaxable and should not be subject to sales tax under Pennsylvania law.
After a thorough review, the Board found that the services provided by One Market Data LLC, including installation, setup, and training related to licensed software, were indeed taxable as cloud computing and support services to canned computer software. Consequently, the Board upheld the tax assessment and denied the petition for abatement of interest. However, since the company paid the outstanding tax liabilities, the Board agreed to reinstate its sales tax license, provided that no other tax liabilities were outstanding. This ruling emphasizes the importance of proper tax compliance and the complexities involved in distinguishing between taxable and nontaxable services in the tech industry. (BF&R Docket Nos. 2317877 and 2317876, Pennsylvania Board of Finance and Revenue, June 28, 2024)