Tax Law

Recent Posts

Washington ALJ Rules Video Game Developer’s Attendance at Trade Show Created Substantial Nexus
Posted on 1 Jan 2021 by Eversheds Sutherland LLP

On December 4, 2020, the Washington Department of Revenue Appeals Division determined that an out-of-state company’s participation in an annual three-day trade show in Washington state was sufficient to create substantial nexus with the state and subject... Read More

Florida Senate introduces economic nexus and marketplace facilitator bill
Posted on 30 Dec 2020 by Eversheds Sutherland LLP

On December 18, SB 50 was filed in the Florida Senate which would require sales tax collection from a person whose remote sales to Florida exceed $100,000 per year. It states that a person whose “taxable remote sales in the previous calendar year” exceed... Read More

Ohio Board of Tax Appeals concludes banking software subject to sales tax
Posted on 29 Dec 2020 by Eversheds Sutherland LLP

The Ohio Board of Tax Appeals found that banking software was subject to sales tax in Cincinnati Federal Savings & Loan v. McClain, Case No. 2018-2247 (December 22, 2020) . The banks purchased software for their online banking system. After initially... Read More

Colorado Department of Revenue Amends Regulation to Tax Streaming Digital Goods
Posted on 22 Dec 2020 by Eversheds Sutherland LLP

On December 1, 2020, the Colorado Department of Revenue adopted amendments to its tangible personal property rule – Rule 39-26-102(15) – that will impose sales tax on sales of streaming digital goods. The Department considers these amendments to be a... Read More

New York Explains that Digital Marketing Service is Non-Taxable Advertising Service
Posted on 18 Dec 2020 by Eversheds Sutherland LLP

The New York State Department of Taxation and Finance issued an advisory opinion explaining that a taxpayer’s charges for digital marketing services are not subject to sales tax. The taxpayer provides digital marketing services to its customers which... Read More

Strike Two: Another California Court of Appeal Holds Voter-Initiated Local Special Taxes Not Subject to Constitutional Two-Thirds Supermajority Voting Requirement
Posted on 18 Dec 2020 by Eversheds Sutherland LLP

On December 17, 2020, a California Court of Appeal in the state’s Fifth Appellate District reversed a Fresno trial court decision, which held the California Constitution’s requirement that local taxes be approved by a supermajority vote applies to taxes... Read More

New York Department of Taxation & Finance Rules On Taxation of On-Line Clothing Subscription Services
Posted on 17 Dec 2020 by Eversheds Sutherland LLP

On June 30, 2020, the New York State Department of Taxation and Finance issued an advisory opinion stating that a clothing rental company’s monthly subscription fees are exempt from state sales tax. The taxpayer operated a clothing rental business, offering... Read More

California Department of Tax and Fee Administration requests comments on marketplace sales regulation
Posted on 17 Dec 2020 by Eversheds Sutherland LLP

The California Department of Tax and Fee Administration has informed the public that it intends to commence formal rulemaking to permanently adopt Emergency Sales and Use Tax Regulation 1684.5, Marketplace Sales . The regulation addresses issues regarding... Read More

Missouri legislator files economic nexus and marketplace facilitator bill
Posted on 16 Dec 2020 by Eversheds Sutherland LLP

A Missouri legislator pre-filed House Bill No. 244 , which would require, beginning January 1, 2022, use tax nexus for remote vendors if their cumulative gross receipts from sales of tangible personal property, digital goods, and services to purchasers... Read More

Deal of a Lifetime: New York Department of Taxation and Finance Rules Coupon Clearing and Processing Products Not Subject to Sales Tax
Posted on 15 Dec 2020 by Eversheds Sutherland LLP

On June 9, 2020, the New York State Department of Taxation and Finance issued an advisory opinion concluding that coupon clearing and processing products sold to advertisers that issue discount coupons and the retailers that accept them are not subject... Read More

Massachusetts Appellate Tax Board Rules Non-Massachusetts S Corporation’s Subsidiary Sale Subject to Massachusetts Tax
Posted on 15 Dec 2020 by Eversheds Sutherland LLP

On October 23, 2020, the Massachusetts Appellate Tax Board ruled that capital gain from a Florida S corporation’s sale of a subsidiary Massachusetts LLC was subject to Massachusetts corporate excise tax and nonresident composite tax. The taxpayer contended... Read More

New Mexico Court of Appeals Invalidates Refund-Claim Requirement Not Found In Statute
Posted on 14 Dec 2020 by Eversheds Sutherland LLP

The New Mexico Court of Appeals held that a taxpayer’s refund claim was timely even though it did not comply with a requirement found in the Department of Revenue’s regulation.  Specifically, the court concluded that the Department’s regulatory requirement... Read More

Marketplace Collection Laws Present Unique Challenges for the Restaurant Industry
Posted on 14 Dec 2020 by Eversheds Sutherland LLP

The pandemic has changed the physical and economic environment in which restaurants operate. Although food delivery has long been popular for certain types of food, pandemic restrictions and consumer preferences hastened the expansion of food delivery... 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