TaxByte: Indiana DOR Ruling Indicates Bundled SaaS not Subject to Sales Tax
The Indiana Department of Revenue found that a company's provision of web-based fleet management services, as well as the company's free mobile application (mobile app), were not subject to Indiana sales and use tax. The company used a "Software as a Service" (SaaS)...
TaxByte: Hawaii Clarifies Sales Tax Position on Downloadable Software
The Hawaii Department of Taxation has issued guidance clarifying its position on the handling of software sales under the general excise tax (GET). Whether the software is included on a tangible medium, such as a disc, or transferred electronically, the sale of...
TaxByte: Colorado Begins Taxing Digital Products as Tangible Personal Property Starting June 23rd, 2021
Colorado's Governor signed H.B. 1312 on June 23, 2021, bringing the law into line with the state's practice of levying sales and use tax on digital items. The new Colorado Revised Statutes broaden the definition of tangible personal property to incorporate all goods,...
TaxByte: Florida Offering 2021 Sales Tax Amnesty Program until September 30th, 2021
Florida has introduced a sales tax amnesty program to provide relief for tax, penalty, and interest due on remote sales that occurred before July 1st, 2021. This is a direct result of Florida's new economic nexus provision. You must register before September 30th,...
Taxbyte: Pennsylvania Announces Voluntary Compliance Program for Retailers to Limit Sales Tax Exposure
Businesses who have inventory or store property in Pennsylvania but are not registered to collect and submit Pennsylvania taxes can participate in a voluntary compliance program offered by the Pennsylvania Department of Revenue (DOR). The 90-day voluntary compliance...
Taxbyte: Maine’s Economic Nexus Transaction Count Threshold To Be Removed January 1st, 2022
Effective January 1st, 2022, Maine will be removing its transaction count threshold from its economic nexus law. Remote businesses without any other presence in the state will only need to begin collecting if they cross the $100,000 sales threshold. This is good news...
Taxbyte: The Economic Nexus Transaction Threshold in Wisconsin Has Been Removed
A remote seller is only expected to collect and remit sales or use tax in Wisconsin if its gross sales in the previous or current calendar year exceed $100,000 as of February 20, 2021. The 200 transaction count threshold has been removed. For federal income tax...
TaxByte: Maryland to Begin Taxing More Digital Products in March, 2021
Effective March 15, 2021, Maryland will begin taxing various digital products including videos, e-books, audiobooks, ring tones, and more. Governor Hogan's veto of HB 932, which imposed Maryland's 6 percent sales and use tax on digital goods, such as digital code,...
TaxByte: Wisconsin Eases Economic Nexus Requirements by Removing 200 Transaction Threshold
Wisconsin has revised its economic nexus law and has eliminated the requirement that businesses collect and remit sales tax if their only presence in the state is having more than 200 transactions per year. This is great news for small businesses who crossed the 200...
TaxByte: Puerto Rico Enacts Marketplace Facilitator Legislation with Regulation No. 9237
On December 8th, 2020 Puerto Rico approved Regulation No. 9237 which enacted marketplace facilitator laws. These laws require (1) marketplace facilitators to collect and remit sales tax on behalf of marketplace sellers and (2) establishes that marketplace sellers are...
TaxByte: Illinois Clarifies Taxability of Web-Based Services (APIs, Applets, Desktop Agents)
In a recent general information letter, Illinois clarified that if a provider of a service provides to the subscriber an API, applet, desktop agent, or a remote access agent to enable the subscriber to access the provider’s network and services, the subscriber is...
Chicago Clarifies Economic Nexus Requirements and Safe Harbor in a Post-Wayfair World
Chicago has clarified that a business will only need to collect and remit sales tax in Chicago if they make more than $100,000 in sales in the most recent four consecutive calendar quarters. Businesses will not have nexus in Chicago simply by crossing the economic...