Tax Law

Recent Posts

New York Rings in the New Year by Proposing Bill that Would Expand Sales Tax Base to Digital Advertising Services
Posted on 31 Dec 2020 by Eversheds Sutherland LLP

Legislation ( S.302 ) was prefiled in the New York State Senate for the 2021-2022 legislative session that would expand the sales tax base to digital advertising services. The bill was prefiled by Democratic State Senator Kevin Thomas . The bill defines... Read More

Tax on Broadband Service Providers is New York’s Newest Bad Idea
Posted on 11 Dec 2020 by Eversheds Sutherland LLP

Companion bills recently introduced in New York State ( A. 11180 and S. 9112 ) would impose a temporary tax on businesses that provide broadband internet access service.  Revenues generated from the tax would be earmarked to fund the provision of broadband... Read More

Texas releases guidance on sales tax for online orders
Posted on 10 Dec 2020 by Eversheds Sutherland LLP

The Texas Comptroller of Public Accounts recently released guidance explaining the application of Texas sales and use tax to online sales. In particular, online buyers must pay sales and use tax on taxable items delivered or brought into Texas. Remote... Read More

Maryland’s Proposed Digital Advertising Tax (HB 732) – Insights and Analysis
Posted on 8 Oct 2020 by Eversheds Sutherland LLP

Ongoing insights and analysis regarding Maryland’s proposed digital ad tax bill The Latest Maryland lawmakers are expected to revive a pair of failed controversial tax expansion proposals shortly after the scheduled start of the next legislative... Read More

Tennessee DOR answers FAQs on sales of pre-recorded instructional videos
Posted on 23 Sep 2020 by Eversheds Sutherland LLP

The Tennessee DOR issued three FAQs ( 1 ,  2 ,  3 ) explaining that the sale of a pre-recorded video of an online course is subject to sales tax as the sale of a specified digital product. The tax result is the same whether the video is on-demand or must... Read More

Colorado updates regulations concerning remote sellers and marketplace facilitators
Posted on 18 Sep 2020 by Eversheds Sutherland LLP

On September 10, the Colorado Department of Revenue promulgated four sets of regulations related to remote sellers and marketplace facilitators. One set, adopts a special rule that establishes the sales tax requirements and conditions for sales made through... Read More

United States representatives introduce anti-DST resolution
Posted on 17 Sep 2020 by Eversheds Sutherland LLP

On September 9, US Congressmen Dan Kildee (D-MI) and Ron Estes (R-KS) introduced a  House Resolution  condemning foreign digital services taxes. H.Res. 1097 expresses “strong opposition to the imposition of digital services taxes by other countries that... Read More

California DTFA proposes guidance on drop shipment taxation
Posted on 9 Sep 2020 by Eversheds Sutherland LLP

On August 25, California’s Department of Tax and Fee Administration released a discussion paper and proposed amended regulations to clarify when marketplace facilitators are considered the retailer with regard to drop shipment transactions. The CDTFA... Read More

Massachusetts Appeals Court issues opinion favorably interpreting Internet Tax Freedom Act’s screening software requirement
Posted on 9 Sep 2020 by Eversheds Sutherland LLP

On September 4, 2020, in New Cingular Wireless PCS LLC v. Commissioner of Revenue , No. 18-P-1317 , the Massachusetts Appeals Court held that the Internet Tax Freedom Act (ITFA) preempted Massachusetts’ sales tax on New Cingular Wireless’ (NCW) Internet... Read More

California DTFA Proposes Guidance on Drop Shipment Taxation
Posted on 2 Sep 2020 by Eversheds Sutherland LLP

On August 25, California’s Department of Tax and Fee Administration released a discussion paper and proposed amended regulations to clarify when marketplace facilitators are considered the retailer with regard to drop shipment transactions. The CDTFA... Read More

Virginia Issues Draft Sports Betting Regulations
Posted on 20 Aug 2020 by Eversheds Sutherland LLP

On August 10, the Virginia Lottery released full draft sports betting regulations for public comment. The regulations will implement H.B. 896/S.B. 384, signed into law on April 22 as Chapter 1218 . The proposed regulations concern operations, internal... Read More

South Carolina Reminds Marketplace Facilitators of Responsibility for COVID-19 Surcharges
Posted on 20 Aug 2020 by Eversheds Sutherland LLP

South Carolina Information Letter No. 20-23 clarified that COVID-19-related surcharges, takeout charges, and the like are subject to sales tax. The information letter, released August 5, “remind[ed]” taxpayers that the 6% sales tax applies to “gross proceeds... Read More

Tennessee Requires Marketplace Facilitators to Collect Occupancy Taxes
Posted on 6 Aug 2020 by Eversheds Sutherland LLP

On July 22, the Tennessee Governor signed into law S.B. 1778, which requires short-term rental unit marketplace facilitators to collect and remit local occupancy tax. The bill, as amended, defines “short-term rental unit marketplace” to mean any person... Read More

Ohio Updates Sourcing Guidance for Marketplace Facilitators
Posted on 7 Aug 2020 by Eversheds Sutherland LLP

Late last month, the Ohio Department of Taxation updated its existing sourcing bulletin to provide that marketplace facilitator sales into the state are sourced for sales and use tax purposes at the location where a consumer receives an order or service... Read More

Marketplace Laws: Implementing a Multistate Compliance Strategy
Posted on 29 Jul 2020 by Eversheds Sutherland LLP

In this episode we discuss the top ten issues that should be considered when evaluating and implementing marketplace collection laws. It is excerpted from the third in our series of webcasts on marketplaces. In the prior two webcasts, we talked about... Read More