Earlier this week, the US Department of the Treasury (Treasury) issued formal guidance regarding the administration of the American Rescue Plan Act of 2021 (ARPA) claw-back provision. The guidance (Interim Final Rule)...more
5/13/2021
/ American Rescue Plan Act of 2021 ,
Clawbacks ,
Constitutional Challenges ,
Franchise Taxes ,
Health Insurance Tax ,
Income Taxes ,
Interim Final Rules (IFR) ,
Internal Revenue Code (IRC) ,
Property Tax ,
Sales & Use Tax ,
Tax Revenues ,
U.S. Treasury
On January 16, a bill (H. 756) was introduced in the Vermont Assembly that would repeal the sales and use tax exemption for remotely accessed prewritten computer software. If enacted as introduced, the exemption would no...more
1/17/2020
/ Cloud Computing ,
Cloud Service Providers (CSPs) ,
E-Commerce ,
Internet Tax Freedom Act ,
Internet Taxation ,
Proposed Legislation ,
Repeal ,
Sales & Use Tax ,
Software ,
Software Developers ,
Tangible Property ,
Tax Exemptions
On January 14, LB 989 was introduced in the Nebraska Legislature, which would impose sales and use tax on “the retail sale of digital advertisements.” The bill defines “digital advertisement” as “an advertising message...more
Recently passed budget legislation in both Connecticut and Rhode Island included tax increases on sales of digital goods and services. The Connecticut bill has been signed into law. The Rhode Island bill passed late last...more
7/1/2019
/ Digital Downloads ,
Digital Goods ,
Digital Services ,
Digital Taxes ,
Electronically Downloaded Products ,
General Assembly ,
New Legislation ,
Pending Legislation ,
Sales & Use Tax ,
State Budgets ,
State Taxes ,
Tangible Property ,
Tax Rates
Legislators in Frankfort added a new “video streaming service” tax to the omnibus tax bill (HB 354) as part of a closed-door conference committee process before the bill was hastily passed in the House and Senate. Notably,...more
The District of Columbia (DC) Office of Tax & Revenue (OTR) implemented sweeping changes to the Qualified High Technology Company (QHTC) certification process this year. As you may remember, beginning last year, OTR...more
On October 11, 2018, US Senators John Thune (R-SD) and Ron Wyden (D-OR) filed the Digital Goods and Services Tax Fairness Act of 2018 (S.3581) for reintroduction in the United States Senate. A companion version is expected to...more
The US House Committee on the Judiciary has scheduled a hearing for Tuesday, July 24 at 10:00 am EDT in 2141 Rayburn House Office Building. According to a press release circulated July 19, the topic of the hearing will be...more
7/23/2018
/ Appeals ,
Commerce Clause ,
Constitutional Challenges ,
Internet Retailers ,
Interstate Commerce ,
Out-of-State Companies ,
Physical Presence Test ,
Quill ,
Reversal ,
Sales & Use Tax ,
SCOTUS ,
South Dakota v. Wayfair ,
Substantial Nexus
On June 21, 2018, the US Supreme Court issued its highly-anticipated decision in South Dakota v. Wayfair, Inc., et al., No. 17-494. The 5-4 opinion was authored by Justice Kennedy and concluded that the physical presence...more
6/22/2018
/ Appeals ,
Commerce Clause ,
Constitutional Challenges ,
Internet Retailers ,
Interstate Commerce ,
Out-of-State Companies ,
Physical Presence Test ,
Quill ,
Reversal ,
Sales & Use Tax ,
SCOTUS ,
South Dakota v. Wayfair ,
Substantial Nexus
On August 17, 2017, the application period opened for the limited-time MTC Marketplace Seller Voluntary Disclosure Initiative opened and it will close October 17, 2017. Since our last blog post on the topic detailing the...more
The Multistate Tax Commission (MTC) is moving quickly to implement a multistate amnesty program through its current National Nexus Program (NNP) for sellers making sales through marketplaces. The new MTC marketplace seller...more
The No Regulation Without Representation Act of 2017 (NRWRA) is scheduled for a hearing before the House Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law on Tuesday, July 25 at 10:00 am EDT in 2141...more
7/25/2017
/ Antitrust Division ,
Business Taxes ,
Commerce Clause ,
De Minimis Claims ,
Dispute Resolution ,
Nexus ,
Physical Presence Test ,
Quill ,
Regulatory Reform ,
Sales & Use Tax ,
State Taxes
The Connecticut Department of Revenue Services (DRS) recently issued demand letters to many remote sellers requiring that they either: (a) provide electronic sales records for all individual sales shipped to a Connecticut...more
On, June 12, 2017, the No Regulation Without Representation Act of 2017 was introduced by Congressman Jim Sensenbrenner (R-WI) with House Judiciary Chairman Bob Goolatte (R-VA) as one of seven original co-sponsors. As...more
On December 12, 2016 the US Supreme Court announced that it denied certiorari in Direct Marketing Association v. Brohl, which was on appeal from the US Court of Appeals for the Tenth Circuit. The denied petitions were filed...more
On August 26, 2016, the Chairman of the House Judiciary Committee, Rep. Goodlatte from Virginia, released the long-anticipated discussion draft of the Online Sales Simplification Act of 2016. Highlights of the bill include...more
On July 14, 2016, Congressman Jim Sensenbrenner (R-WI) introduced the No Regulation Without Representation Act of 2016 (H.R. 5893) in the US House of Representatives (House). The bill would codify the physical presence...more
On June 16, 2016, the Tennessee Department of Revenue (DOR) submitted a new sales and use tax regulation for publication titled “Out-of-State Dealers” that would administratively create an economic nexus threshold. While the...more
Ever since Alabama’s new economic nexus regulation went into effect, litigation over its constitutionality has been expected given that Alabama Commissioner Julie Magee and Governor Bentley said as much when announcing it...more
6/16/2016
/ Appeals ,
Commerce Clause ,
Department of Revenue ,
Federal Question Jurisdiction ,
Internet Retailers ,
Look-Back Measurement Period ,
Nexus ,
Notice of Appeal ,
Physical Presence Test ,
Remand ,
Removal ,
Sales & Use Tax ,
Subject Matter Jurisdiction ,
Tax Tribunal
After a quarter of a century, the school book nexus cases continue to proliferate, delight and mystify. The latest installment in the saga is from Alabama. Scholastic Book Clubs, Inc. 2931 v. State Of Alabama Department Of...more
After refusing to back down on the issue for years, the Michigan Department of Treasury (Department) issued guidance last week to taxpayers announcing a change in its policy on the sales and use taxation of remotely accessed...more
Remote sellers making sales into Alabama have until January 1, 2016, to begin collecting sales tax regardless of their physical presence in the state or consider whether there is any impact on financial statement issues as a...more
On October 27, 2015, a three-judge panel sitting for the Michigan Court of Appeals unanimously affirmed a lower court decision finding that the use of cloud-based services in Michigan is not subject to use tax in Auto-Owners...more
10/30/2015
/ Appeals ,
Cloud Computing ,
De Novo Standard of Review ,
MI Supreme Court ,
Precedential Opinion ,
Sales & Use Tax ,
Software ,
Stare Decisis ,
State Taxes ,
Tangible Property ,
Third-Party Service Provider
Today, Representative Jason Chaffetz introduced H.R. 2775, the Remote Transactions Parity Act of 2015 (RTPA), in the United States House of Representatives (House).
The RTPA addresses the Internet sales tax issue using...more
With many state legislatures wrapping up session within the past month or so, there has been a flurry of last-minute tax amnesty legislation passed. Nearly a half-dozen states have authorized upcoming tax amnesty periods....more