With states looking for ways to increase revenue, a natural source may be the burgeoning area of digital goods and services. It is reasonable to ask, therefore, how states apply their sales and use tax provisions to these digital goods and services.
Sales and use tax
Given the already-tenuous constitutionality of the idea of click-through nexus, it is not surprising that constitutional challenges have been raised in both New York and Illinois.
This column revisits the issues presented by the Direct Marketing Association’s suit against the Colorado Department of Revenue and the history thus far.
The permanent injunction that a federal district court issued in March 2012 enjoining Colorado from enforcing its Amazon law requiring remote sellers to report sales in the state has been dismissed by an appeals court.
The Illinois Supreme Court held that Illinois’s click-through nexus law is expressly preempted by the federal Internet Tax Freedom Act, which prohibits states from imposing discriminatory taxes on electronic commerce.
Today’s corporate tax departments are questioning whether they really need expensive bolt-on software for use tax compliance.
The permanent injunction that a federal district court issued enjoining Colorado from enforcing its Amazon law requiring remote sellers to report sales in the state has been dismissed by an appeals court.
Many states offer sales tax exemptions to companies that manufacture or are involved in the production or processing of oil and gas.
New York’s highest court has confirmed that New York residents have to pay sales tax on internet sales where the vendor’s only contact with the state is through in-state affiliates.
This column updates readers on some recent state guidance on cloud service offerings and highlights a few examples of the trends appearing at the state level.
Click-through or affiliate nexus legislation has become a popular way for states to require certain remote sellers (i.e., internet vendors) to collect sales or use tax on their sales to in-state residents.
An approach to analyzing the sales and use tax implications of a purchase on the cloud.
This article discusses common issues in state sales tax audits and gives tips and best practices for each part of an audit life cycle.
A district court held that a law, which imposed notice and reporting requirements on retailers that do not collect and remit sales tax on sales to Colorado customers, was unconstitutional because it violated the Commerce Clause.
The Circuit Court for Cook County in Illinois issued an eagerly awaited order explaining its bench decision on April 25, which declared Illinois’s “click-through nexus” law unconstitutional.
Colorado’s "Amazon" Law Requiring Out-of-State Retailers to Report Sales Held to Be Unconstitutional
A federal district court held that the Colorado law requiring out-of state retailers to report information about customers’ purchases to each customer and to the state is unconstitutional.
As more states allow residents to report a liability for state use taxes on their individual income tax returns, practitioners will have to explain to clients their obligations in reporting use tax liability and address the professional standards for reporting use tax on a state income tax return.
Over the past three years, several states have expanded the activities that create sales tax nexus for out-of-state retailers without a physical presence in the state.
Guidance on the sales tax treatment of prepaid discount vouchers or "deal of the day" certificates purchased on internet sites has been provided by several states recently, with more likely to follow soon.
This item addresses the sales and use tax implications of canned software (prewritten programs) under two recent California cases in light of that state's current statutory scheme.