Tax Law

Recent Posts

On Call: Tennessee DOR Says B2B Digital Services Subject to Sales Tax as “Specified Digital Products”
Posted on 13 Jul 2020 by Eversheds Sutherland LLP

In a recently issued revenue ruling, the Tennessee Department of Revenue determined that a taxpayer’s digital services provided to other businesses were taxable “specified digital products,” a broad term based on definitions (and subject to detailed operating... Read More

Georgia DOR Rules that Sales Tax does not Apply to Most of Taxpayer’s Healthcare Document Management Services
Posted on 9 Jul 2020 by Eversheds Sutherland LLP

In a recently released letter ruling, the Georgia Department of Revenue concluded that charges for the electronic delivery of medical records, and services related to the management and processing of medical records, are not subject to sales and use tax... Read More

Ohio and Texas Issue Guidance on Expiration of Internet Tax Freedom Act Grandfather Clause
Posted on 17 Jun 2020 by Eversheds Sutherland LLP

On June 30th, 2020, the Internet Tax Freedom Act’s grandfather clause will expire. ITFA prohibits states and political subdivisions from imposing taxes on Internet access. But the grandfather clause has permitted such taxes if they were generally imposed... Read More

North Carolina Excludes Sales of Certain Digital Goods from Sales and Use Taxes
Posted on 11 Jun 2020 by Eversheds Sutherland LLP

On June 5, 2020, Governor Cooper signed HB 1079 , which will exclude sales of certain digital audio and visual works from the state’s sales and use tax, and make other tax changes. The law exempts sales of digital educational services and the sales of... Read More

Kansas Legislative Committee Continues to Work on Marketplace Seller and Facilitator Legislation
Posted on 20 May 2020 by Eversheds Sutherland LLP

During a series of remote committee hearings, the Kansas House Committee on Taxation discussed revisions and amendments to marketplace facilitator legislation. Kansas is currently one of the few states without a marketplace facilitator or remote seller... Read More

Recapture Not Required: COVID-19 May Excuse Businesses from Repayment of Nebraska Incentives
Posted on 7 May 2020 by Eversheds Sutherland LLP

The Nebraska Department of Revenue (“Department”) issued guidance explaining that Nebraska Advantage Act (“Act”) project-holders may not have to repay incentives if they cannot meet their project obligations due to COVID-19. The Act provides incentives... Read More

Try As They Might, Telco’s Electricity Purchases Still Do Not Qualify for New York’s Resale Exemption
Posted on 24 Apr 2020 by Eversheds Sutherland LLP

A New York appellate court affirmed the Division of Tax Appeals (DTA) denial of a telecommunications company’s refund request on sales tax paid on its purchases of electricity. The telecommunications company argued that its electricity purchases were... Read More

I’ll Take the Desk to Go: Missouri Supreme Court Denies Sale-For-Resale Exemption to Hotel Furnisher
Posted on 9 Apr 2020 by Eversheds Sutherland LLP

The Missouri Supreme Court held that a company’s sales of linens, mattresses, desks, garbage cans, and DVD players to a company operating a chain of hotels were not exempt from sales tax as sales for resale. The court rejected the furnishing company’s... Read More

Utah Governor Signs Amendment for Sales and Use Tax Exemptions
Posted on 8 Apr 2020 by Eversheds Sutherland LLP

The Utah Governor signed a law amending sales and use tax exemptions in relation to certain data centers on March 31, 2020. S.B. 114 includes several measures including the definition of a qualifying data center for purposes of the Sales and Use Tax Act;... Read More

Updated California State and Local Guidance Related to COVID-19 Relief
Posted on 2 Apr 2020 by Eversheds Sutherland LLP

In response to California Governor Gavin Newsom’s Executive Order N-40-20, the California Department of Tax and Fee Administration (CDTFA) has updated its guidance to taxpayers impacted by COVID-19 regarding relief from interest and penalties and extended... Read More

California Governor Issues Executive Order Authorizing Sales & Use Tax Return Filing, Refund Claim, and Appeal Extensions
Posted on 31 Mar 2020 by Eversheds Sutherland LLP

On March 30, 2020, California Governor Gavin Newsom issued Executive Order N-40-20 (Order) regarding the state’s COVID-19 State of Emergency. The Order grants additional extensions to taxpayers and gives new authority to the California Department of Tax... Read More

Pay to watch play: Florida DOR concludes that video game streaming site subscriptions are subject to Florida communications services tax
Posted on 6 Mar 2020 by Eversheds Sutherland LLP

The Florida Department of Revenue issued a Technical Assistance Advisement concluding that an internet-based streaming video subscription service is subject to Florida’s communication services tax. The Taxpayer maintains a website where viewers can watch... Read More

Lights, Camera, Action – Colorado Court of Appeals Upholds Use Tax on Licensing Agreements With Motion Picture Distributors
Posted on 12 Feb 2020 by Eversheds Sutherland LLP

The Colorado Court of Appeals held that the City of Aurora correctly levied use tax on American Multi-Cinema, Inc.’s (AMC’s) license agreements with film distributors. The court concluded that the true object of the arrangement was to obtain tangible... Read More

Regulation De-construction: Pennsylvania Court Holds Statutory Amendment Superseded Regulation
Posted on 22 Oct 2019 by Eversheds Sutherland LLP

On October 16, 2019, the Pennsylvania Commonwealth Court held that a bank was required to pay sales tax on its purchases of computer hardware, canned computer software, and related services because a statutory amendment superseded the bank’s relied-upon... Read More

Survey Says: Online Survey Results Not a Taxable Communication Service in South Carolina
Posted on 12 Jul 2019 by Eversheds Sutherland LLP

The South Carolina Department of Revenue issued a private letter ruling advising a company that its charges for developing and conducting surveys tailored to its clients’ needs are not subject to sales and use tax as communications services. Although... Read More