Archives: Sales and Use Tax

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Nevada Enacts Click-Through, Affiliate Nexus

On May 27, Nevada enacted legislation (A.B. 380) that adds click-through and affiliate provisions to its sales and use tax laws.  Click-through nexus is effective October 1, 2015.  Affiliate nexus is effective three months earlier, on July 1, 2015. Under the new click-through nexus law, an out-of-state retailer contracting with Nevada residents whose referrals result … Continue Reading

Congress’ Newest Attempt to Legislate Over Quill

Recently, the Remote Transactions Parity Act of 2015 (“RTPA”; H.R. 2775) has been introduced to the House Committee on the Judiciary.  Its introduction was due to Representative Jason Chaffetz’s (R-UT) promise to replace the Marketplace Fairness Act (“MFA”; died as H.R. 684; reintroduced in the Senate this year as S. 698), to the National Conference … Continue Reading

Massachusetts Reverses Course on Taxing Cloud Services

On November 8th, the Massachusetts Department of Revenue revised and reissued Letter Ruling No. 12-8, originally released July 16, 2012. The original ruling addressed the taxability of a cloud computing product comprised of remote storage and computing capacity where users elect to use software licensed from a third-party rather than their own software or open-source … Continue Reading

Utah Zaps a Phantom Menace

Zappers and phantomware—software programs that are added-on (zappers) or factory installed (phantomware) to electronic cash register systems and other point-of-sale devices—have been around since the mid-point of the last decade and have been on the minds of state sales tax authorities since about the same time. Of the two programs, zappers (traditionally) appear to have … Continue Reading

New Jersey Assembly Passes Affiliate Nexus Deferral Bill

An update on our previous coverage of affiliate nexus legislation in New Jersey: Word this morning that the New Jersey Assembly has passed A2608, a bill that would—at least temporarily—defer sales tax obligations for certain qualified persons who make “significant investments” and “create specified jobs” in the state. The bill amends the state’s sales and … Continue Reading

Utah Passes Affiliate Nexus Legislation; Urges Congress to Pass Nexus Bill

Last week, the Utah legislature passed both an affiliate nexus bill that will require remote sellers to collect and remit sales tax and a joint resolution urging Congress to pass national, remote-seller legislation. H.B. 384 expands the obligation on a seller to collect and remit sales tax to remote sellers who “sell tangible personal property, … 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

Tennessee Legislature Passes Affiliate Nexus; Awaiting Governor’s Signature

Following a series of negotiations with Amazon.com last year regarding the retailer’s plan to build two of its distribution centers in the state, the Tennessee legislature last week passed House Bill 2370/Senate Bill 2232, a new sales tax law that establishes the requirements for determining whether affiliates have physical presence in Tennessee sufficient to establish … 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

eBay Again Bids on Users to Set Up Shop on Its Main Street

Gearing up for the fight to take place in Congress over not just one but three federal sales tax nexus bills, over the weekend, eBay again reached out to its users through a mass email campaign aimed to increase awareness of and membership in eBay Main Street, the Internet e-retailer’s grassroots network that “keeps [users] … Continue Reading

Amazon… Is New Jersey Where It’s At?

The NJ Daily Record published this story over the weekend regarding New Jersey Assembly Bill A-2608, a bill introduced in the state assembly last week that would exempt an online retailer (Amazon, perhaps?) from an obligation to collect and remit sales tax on online purchases made by New Jersey residents until September 1, 2013, provided that it satisfy … 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

BREAKING NEWS: PA Gives Remote Sellers a 6-Month Reprieve on Nexus Registration

Late last Friday, January 27th, the Pennsylvania Department of Revenue announced a 6-month reprieve for remote sellers required to register with the Commonwealth to collect and remit sales tax for purchases made by Pennsylvania residents.  Citing pushback from remote sellers and in particular, issues with getting tax collection software online in order to turn on … Continue Reading

Click Here for Nexus? Pennsylvania’s “New” Affiliate Nexus Guidance

On December 1, 2011, the Department of Revenue issued Sales and Use Tax Bulletin 2011-01 to remind remote sellers of their sales tax collection obligations.  For a link to the Bulletin, please visit www.reedsmith.com/patax. This Bulletin makes it clear that going forward, the Department’s policy will be to apply Pennsylvania’s sales and use tax statute1 to remote sellers … 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
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