Tax Law

Recent Posts

Legal Alert: Maryland bill proposes digital goods tax
Posted on 5 Feb 2019 by Eversheds Sutherland LLP

The Maryland House of Delegates is considering legislation (House Bill 426) that would impose sales and use tax on digital products and sales tax on digital codes. If signed into law, Maryland would begin taxing digital products and digital codes on July... Read More

I Saw the Sign: Illinois Permits Use of Electronic Signatures for Software License Tax Exemption
Posted on 13 Dec 2018 by Eversheds Sutherland LLP

On September 26, 2018, the Illinois Department of Revenue issued a Private Letter Ruling confirming that certain electronic signatures satisfied the first prong of the software license sales tax exemption test. In Illinois, a license of software is not... Read More

Legal Alert: Overlooked opportunities? State tax considerations relating to investments in federal qualified opportunity zones
Posted on 2 Nov 2018 by Eversheds Sutherland LLP

The federal Tax Cuts and Jobs Act (TCJA) created a new economic development program designed to spur investment in certain low-income communities designated as “Opportunity Zones.” The new federal tax provisions offer significant opportunities to defer... Read More

"Stay Just a Little Bit Longer" by Booking Online: Court Holds Orbitz's Services Not Taxable in Wisconsin
Posted on 2 Mar 2016 by Eversheds Sutherland LLP

By Todd Betor and Jonathan Feldman On February 11, the Wisconsin Court of Appeals held that the receipts earned by Orbitz, an online travel company, from its services and markups for reserved rooms are not subject to sales tax. Specifically, the court... Read More

It's Not So Electric: Telecommunications Provider's NYS Electricity Purchases Not Exempt Sales for Resale
Posted on 27 Mar 2017 by Eversheds Sutherland LLP

By Nicole Boutros and Scott Wright A New York State Division of Tax Appeals administrative law judge (ALJ) determined that a telecommunications provider’s electricity purchases were not exempt from sales tax as sales for resale. In so doing, the... Read More

Buying a Bit - Purchases of Bitcoins Are Not Subject to Sales Tax in Missouri
Posted on 16 Oct 2014 by Eversheds Sutherland LLP

By Mary Alexander and Charlie Kearns The Missouri Department of Revenue determined in a letter ruling that Bitcoins are intangible property not subject to tax under Missouri’s Sales and Use Tax Law. As explained by the taxpayer, Bitcoins are “a... Read More

Are Your Software Keys Delivered the Old Fashioned Way? Iowa DOR Declares Tangible Digital Software Keys Exempt from Sales Tax
Posted on 30 Nov 2015 by Eversheds Sutherland LLP

By Nick Kump and Charlie Kearns The Iowa Department of Revenue issued a policy letter declaring that the delivery of a digital software key on a tangible card is exempt from sales tax, as long as the software itself is delivered digitally and there is... Read More

Washington Plays the Name Game: Domain Name Registration Services Are Subject to Sales Tax
Posted on 28 May 2015 by Eversheds Sutherland LLP

By Jessie Eisenmenger and Andrew Appleby The State of Washington Department of Revenue issued public guidance explaining that the initial sale of a domain name by a registrar is subject to retail sales or use tax. A domain name is a unique name that allows... Read More

Customer Is Not Always Right in the Buckeye State: Ohio Board of Tax Appeals Holds Transcription Service Is not a Personal or Professional Service Exempt from Use Tax
Posted on 30 Nov 2015 by Eversheds Sutherland LLP

By Nick Kump and Charlie Kearns The Ohio Board of Tax Appeals held that medical transcription services are taxable automatic data processing services, rather than tax-exempt personal or professional services, because of the minimal level of personal skill... Read More

Colorado Colocation Consternation: Department of Revenue Gives General Guidance on Application of Sales and Use Tax to Colocation and Hosting Facility
Posted on 25 Nov 2014 by Eversheds Sutherland LLP

By Evan Hamme and Timothy Gustafson The Colorado Department of Revenue issued guidance to a taxpayer operating a colocation and hosting facility, which provided customers a place to securely store computer servers, on whether certain charges imposed by... Read More

More Than Just a Little Bit - New Jersey Division of Taxation Says Convertible Virtual Currency Transactions, Like Bitcoins, Are Subject to State Sales and Use Tax, Corporation Business Tax and Gross Income Tax
Posted on 25 Jun 2015 by Eversheds Sutherland LLP

By Robert P. Merten III and Prentiss Willson The New Jersey Division of Taxation has issued a technical advisory memorandum (TAM) explaining New Jersey’s tax position that transactions involving convertible virtual currency— “electronic... Read More

Technical Support: Tennessee Publishes Guidance on Sales Tax Treatment of Computer Software Maintenance Contracts
Posted on 2 Feb 2016 by Eversheds Sutherland LLP

By Chris Mehrmann and Charlie Kearns The Tennessee Department of Revenue has issued guidance explaining that the retail sale of, use of, or subscription to a computer software maintenance contract is subject to sales and use tax when: (1) the maintenance... Read More

California Legislative Committee Holds Informational Hearing on Lucent and Administering California's Technology Transfer Agreement Law
Posted on 6 Feb 2017 by Eversheds Sutherland LLP

On January 30, 2017, the California Legislature Assembly Committee on Revenue and Taxation held an informational hearing on “Life after Lucent : Administering California’s Technology Transfer Agreement Law.” The California State Board... Read More

Marketplace Providers Are Statutorily Required to Collect Sales Tax in Minnesota and Washington
Posted on 26 Jul 2017 by Eversheds Sutherland LLP

By Jeff Friedman and Stephanie Do A new landmark sales tax statute has been adopted in Minnesota, which expands sales tax collection requirements to those retailers that sell their goods on certain “marketplaces.” Generally, only a retailer... Read More

It Depends: Tennessee DOR Ruling Analyzes Optional Software-Related Services
Posted on 5 Jan 2015 by Eversheds Sutherland LLP

By Evan Hamme and Madison Barnett Applying the “true object” test to software-related services, the Tennessee Department of Revenue determined in a letter ruling that optional services offered in connection with the sale of software would... Read More