Archives: Digital Goods and Services

Subscribe to Digital Goods and Services RSS Feed

Texas Issues Notable Ruling on Tax of Digital Services

The Texas Comptroller of Public Accounts recently issued a decision regarding the taxability of digitized services provided by a Taxpayer to oil and gas industry customers. The Taxpayer’s digitized service involves analysis of gas well log data received and the tailoring of that data in reports to the client to its specific needs.  For example, the Taxpayer might take gas well data and … Continue Reading

Connecticut Legislature Considering Tax on iTunes, eBooks, Ring Tones

The Connecticut General Assembly’s Finance, Revenue and Bonding Committee has introduced Bill No. 400—legislation that would expand the state’s current sales tax definition of ‘sale’ to include, “the electronic transfer, for consideration, of any digital product [as further defined by the bill] that grants to a purchaser the right or license to use, retain or … Continue Reading

Just in Time for iPad3? California Updates Internet Sales and Digital Downloads Guidance

For iPad devotees, California’s timing couldn’t be better. As the world (including, admittedly, the editors of this blog) await with baited-breath the possible news from Apple this morning on the next generation of its iPad tablet, the California State Board of Equalization has issued revised guidance on the taxability of internet sales, including downloads of … Continue Reading

You’re Invited! Clouds, Codes, and Crunching Numbers: An Update on Current Multi-State Tax Developments

You’re Invited! On Wednesday, March 14, we will present our semi-annual update on the state tax developments involving E-commerce and the treatment of digital goods and services including: software, cloud computing, web-based services, web-hosting, and electronic data processing. The taxation of emerging technologies is an area of tax law that is developing as quickly as … Continue Reading

An Apple(t) Downloaded Today Won’t Keep the Taxman Away: Utah Takes a Bite Out of Web-Based Services

The Utah Tax Commission recently issued Private Letter Ruling No. 10-011 (2/24/12) in which it determined that the provision of certain web-based services are subject to sales tax under two newly amended sections of the Utah Code.  The ruling is a significant shift from prior rulings in Utah that held that access to software on … Continue Reading

Taxing the Clouds – SaaS in Kansas: They’ve Gone About as Far as They Can Go…

It seems that “everything’s up to date in Kansas City”*—and the rest of Kansas for that matter—when it comes to the tax treatment of SaaS, or software as a service. On Monday, in an opinion letter issued by the Office of Policy and Research, the Department of Revenue determined that charges for a “hosted software … Continue Reading

New Jersey Joins the Click-Through Nexus Initiative

As anticipated in our client alert, authored in part by my colleague Allie Carlson, New Jersey legislation has been proposed providing broad affiliate nexus provisions.[1]  In the bulk of the provisions expanding the definition of a New Jersey seller, an ownership interest in an in-state entity is prerequisite to finding nexus.  This is defined as … Continue Reading

California Software Refunds – SBE Issues Guidance to Auditors on Nortel Claims

Earlier this year, the California Court of Appeal (2nd District) issued its decision in Nortel Networks, Inc. v. State Board of Equalization, holding that sales of prewritten software fall within California’s sales and use tax exemption for transfers of intangible property pursuant to a technology transfer agreement (TTA).  The Court held that as long as … Continue Reading

Play On! MO Says NO to Tax on (Some) Codes & Credits

In a recent letter ruling, the Missouri Department of Revenue was asked to consider if certain video and virtual-reality game products were subject to that state’s sales and use tax. Specifically, the products at issue in the ruling request were: digital access codes printed on a receipt, which when entered on a website allow a … Continue Reading

Pennsylvania… Amazon Stops Here!

While it’s certainly not the first state to consider affiliate nexus legislation (since 2009, several states including: Colorado, Illinois, Rhode Island, North Carolina, Arkansas, New York, Connecticut, and California, have passed affiliate nexus—or “click-through”—laws), a bill was recently introduced in the Pennsylvania legislature that, if passed, would greatly expand the definition of nexus for sales … Continue Reading
LexBlog