5 Major Developments in the United States

5 Major Developments in the United States

• Government Accountability Office Raises Three Concerns about U.S. Sales Tax System

• The American Exception: Why the US Has No VAT System?

• Rise of the Tax Machines: IRS algorithms are coming for you

• Record number of cities and counties seeking local sales taxes

• Proposed Superfund Tax regulations address many issues, but leave others open

Bad Debts (Relief for Underpaid Sales Invoices)

• Bad debt sales tax credit and B&O tax deduction (Washington State)

• Washington: Retailer Can’t Claim “Bad Debt” Refunds on Defaulted Private Label Credit Card Payments

• Ohio: New Law Permits Bad Debt Deductions for Certain Private Label Credit Card Transactions

• Ohio Expands Bad Debts to Include Tax Paid on Purchases made with Private Label Credit Cards

Bookkeeping

• Ohio Upholds Assessment Due to Insufficient Documentation to Support Out-of-State Sourcing

Composite Supply

• New York Refuses to “Split the Baby” and Treats Integrated Service as Taxable Software

Cryptocurrency and NFT

• States Issue Guidance on the Tax Treatment of Cryptocurrency and NFTs

• 2023 Sales Tax Trends: Digital Taxes Take Off

• California: Guidance Provided on the Application of Tax to the Purchase or Sale of Cryptocurrency

• California: Guidance Provided on Application of Tax to Transactions in Which Payment is Made with Cryptocurrency

Customs

• United States increases tariffs on aluminum from Russia

• KPMG Week in Tax: 20 – 24 March 2023

• KPMG Week in Tax: 13 – 17 March 2023

• U.S. Additions and Revisions to Export Administration Regulations (EAR) Entity List

• CBP expands volunteer e-commerce data-sharing pilot program

• U.S. implementation of additional sanctions against Russia and Belarus

• U.S. guidance on Section 301 duties and product exclusions (imports from China)

• U.S. final rule imposing new export control measures on Iran

• U.S. additions and amendments to Export Administration Regulations (EAR) entity list

• US Customs: Additional data needed for China-origin goods

• US President Signs Two Bills with Implications for Sanctions, Export Controls, and Related Subjects

• U.S. Congressional Research Service Publishes Updated Report on Section 301 Tariff Exclusions on U.S. Imports from China

Deduction (Input Tax Credit)

• New Mexico: Receipts from Services Provided to Medicare Beneficiaries Did Not Qualify for Deduction

Digital Services Tax

• What are the sales and use tax implications of the metaverse?

• Landis Case Underscores Tax Risks Tied to Digital Goods Sales

• Indiana: Guidance on Taxability of Sale, Lease, or Use of Computer Hardware, Software, and Digital Goods Issued

• Maryland Supreme Court Asked to Review Case Invalidating Gross Receipts Tax on Digital Ad Services

E-Commerce / Electronic Services

• Various changes including revision of definition of “telemarketing services” (Kentucky)

• Sales tax treatment of computer software (Mississippi)

• New York Refuses to “Split the Baby” and Treats Integrated Service as Taxable Software

• Virtual services subject to sales and use tax (Rhode Island)

• Sales taxes on Software as a Service (SaaS)

• Utah Tax: Peer-to-Peer Car Sharing Provisions Modified

• Federal: US Supreme Court Asked to Review Case Disregarding Dilworth and Upholding Constitutionality of Taxation

• Platform Economy: Will The Real Tax Collector Please Stand Up?

• Sales tax guidance for marketplace providers (Minnesota)

• Online ticket marketplace liable for sales and use tax (Wisconsin)

• Minnesota DOR Explains Marketplace Provider Collection and Remittance Requirements and Exemptions

• Getting digital with sales tax in 2023

• Retailers/ecommerce companies face special sales tax challenges

• South Dakota Revises Remote Sellers Threshold

• Minnesota: Guidance on Tax Liability for Marketplace Providers Updated

• North Carolina: Private Letter Ruling Addresses if Online Platform is a Marketplace Facilitator

• A B2B Online Platform Does Not Meet Florida’s Definition of a Marketplace Facilitator

• Taxpayer Doesn’t Meet Definition of Marketplace Facilitator in North Carolina

• Illinois Amends Administrative Code to Address Specifics of Leveling the Playfield for Out of State Sellers

• CBP expands volunteer e-commerce data-sharing pilot program

• North Carolina: Taxpayer Did Not Meet the Definition of “Marketplace Facilitator”

• South Dakota: New Law Removes 200-Transaction Threshold from Wayfair Economic Nexus Statute

• Missouri DOR Proposes Amended and New Rules on Drop Shipments and Marketplace Facilitators

• Louisiana: Draft Proposed New Rules and Bulletin on Remote Sellers and Marketplace Facilitators

• South Dakota Removing Transaction Threshold for Remote Sellers

• US South Dakota ends foreign seller sales tax transaction threshold July 2023

• Taxation of digital products and services and software (multistate)

• Sourcing of local sales tax on internet orders (Texas)

• US Georgia 4% sales tax proposal for digital services

• H.B. 170: Understanding the Proposed Digital Tax in Georgia

• Wayfair still key in nexus judgments

• 2023 Sales Tax Trends: Digital Taxes Take Off

• Texas Economic Nexus: Sales Tax Requirements for Out-of-State Businesses

• California Economic Nexus: Sales Tax Requirements for Out-of-State Businesses

• Maryland Supreme Court Agrees to Review Case Invalidating Gross Receipts Tax on Digital Ad Services

• California: February 7 Public Hearing Scheduled for Proposed Marketplace Sales Rule

• Sales tax refunds on software and hardware (Florida)

• Oklahoma: Guidance Explains Scope of Marketplace Facilitator Collection and Remittance Obligations

• Sales and use tax changes (Missouri)

• South Dakota Legislative Proposal: Revise Remote Seller Criteria to Remove 200 Transaction Threshold

• Massachusetts Supreme Court Rejects Cookie Nexus

• Texas Comptroller of Public Accounts Explains Policy on Remote Sellers and Marketplaces

• Missouri: Rule Amendments Proposed for Comment Reflect Post-Wayfair Nexus Standard for Vendors

• California will require marketplace facilitators to collect information from high-volume sellers

• Massachusetts Supreme Judicial Court Affirms that DOR Cannot Enforce Wayfair Retroactively

• Florida DOR Ruling Addresses Whether Online Marketplace Constitutes a Marketplace Provider

• Economic nexus overview – All states with Sales Tax now active

• Missouri: Remote Seller and Marketplace Facilitator FAQs

• What happened in sales tax in 2022?

E-Invoicing

• United States Launches Electronic Invoicing Pilot Project

• 3 indirect tax trends to watch out for in 2023

Excise

• Proposed Superfund Tax regulations address many issues, but leave others open

• Vaping excise tax proposed

Exemption

• Missouri Senate exempts firearms, ammo, diapers and feminine hygiene products from sales tax

• Virginia Extends Sales Tax Exemptions for Natural Gas and Oil

• Virginia: Data Center Exemption Extended

• Mississippi Exempts Property First Used Out-of-State from Sales Tax

• Arkansas: Manufacturing Machinery and Equipment Exemption Expanded

• District of Columbia High Court Denies Resale Exemption Because Certificate Not Provided at Time of Purchase

• 3 Sales tax pitfalls facing manufacturers and wholesalers

• Why would Missouri exempt guns from sales tax, but leave out other manufacturers?

• Georgia: New Tax Rate Chart Released for Sales Exempt from Certain Local Taxes

• Kansas House passes telecom sales tax exemption

• South Carolina Appellate Court Overturns ALC and Holds for Narrower Application of Machine Exemption

• Sales tax on resold items (District of Columbia)

• Alabama: Purchases of Antimicrobial Agents Did Not Qualify for Wholesale Exemption

• Texas Court Addresses Flow-Through of Sales Tax Exemptions for Government Contractors

• Rhode Island Assesses Sales Tax on Seller Who Failed to Comply with the Resale Certificate Process

• Manufacturing machinery and equipment sales tax exclusion (Louisiana)

• 3 Trending 2023 Sales Tax Issues

• Sales Tax Changes for New York Counties Coming March 1st.

• Sales Tax Changes for New York Counties Coming March 1st

• Louisiana Board of Tax Appeals Says Personal Data Cloud/Storage Services are Exempt under ITFA

• Resale tax exemption (Missouri)

• Missouri: Intercompany Resales of Configured IT Equipment are Deemed to Qualify for Exemption

• New York revised a publication listing local sales and use tax rates on clothing and footwear, effective March 1, 2023

• Rolling stock use tax exemption (Michigan)

• Kodiak, Alaska: Annual Sales Tax Holiday occurring March 4, 2023

• Rhode Island: Hearing Officer Says Timing of Resale Exemption Certificate Acceptance Dictates Taxability

• Ketchikan Gateway Borough & City of Ketchikan Sales Tax Holiday March 25, 2023

• Indiana: Guidance Issued on Exemption for Unitary or Bundled Transactions of $0.07 or Less

• Indiana: Guidance on Taxability of Cable, Satellite Television, or Radio Services Issued

• Kansas lawmakers debate sales tax holiday

• Key Sales Tax Updates Affecting the Northeast

• Hardware Company Sales Not Wholesale, Mississippi Justices Told

• South Carolina Public Utilities Cannot Claim Manufacturing Exemption

• Kentucky Supreme Court Overturns Appellate Court to Hold that Manufacturer Purchased Exempt Supplies

• State-by-State Guide: How to Cancel Your Sales Tax Permit Account in Each State

• State-by-State Guide: How to Get a Sales Tax Resale Certificate in Each State

Export

• U.S. Additions and Revisions to Export Administration Regulations (EAR) Entity List
• U.S. implementation of additional sanctions against Russia and Belarus
• U.S. final rule imposing new export control measures on Iran
• U.S. additions and amendments to Export Administration Regulations (EAR) entity list – VATupdate

Fixed Establishment

• Massachusetts Supreme Court Rejects Cookie Nexus

• Sales tax and economic nexus in Puerto Rico

• Massachusetts: Out-of-State Auto Part Maker’s Use of Cookies and Apps Not Considered Physical Presence

• What is a sales tax exemption?

Fraud / Tax Evasion

• Arizona: Taxpayers Personally Liable for Company’s Unpaid Taxes

Free Trade Agreement

• USMCA panel rules against US position in automotive origin dispute

Implementation / Reform

• The American Exception: Why the US Has No VAT System?

• Colorado Retail Delivery Fee Increase Effective July 2023

• Merkley, Colleagues Introduce Resolution Opposing Republican Plan to Impose National Sales Tax

• What You Need to Know about the Proposed National Sales Tax

• Nebraska: Erdman’s consumption tax, early voting rollback set for Unicam hearings

• What is national consumption tax? What House Republicans are trying to change with Fair Tax Act

• Colorado Department of Revenue Adopts Rules Implementing New Retail Delivery Fee

• A 30% national sales tax? Abolishing the IRS? What the FairTax Act of 2023 would do

• A Closer Look At The National Sales Tax Proposal

• What is the Fair Tax Act? Republicans propose national sales tax

• Is the national sales tax bill DEAD?

• Biden tweets about 30% national sales tax

• Roth: A federal consumption tax is a terrible idea

• Consumption Taxes: An Overview (Congressional Research Service report for Congress)

• Here’s How the Proposed National Sales Tax Would Work

• Massachusetts Lawmakers Propose Digital Advertising Tax

• New Mexico: Governor Calls for Tax Reform

• Could a national sales tax grease the economy and raise incomes by 10% — but hurt the middle class?

• President Biden Will Veto Bills Imposing a National Sales Tax

• U.S. Representative announces National Sales Tax

Importation

• U.S. guidance on Section 301 duties and product exclusions (imports from China)

Liability (Reverse Charge/Withholding)

• Arizona: Taxpayers Personally Liable for Company’s Unpaid Taxes

• Owner personally liable for sales tax

Place of Supply

• Ohio Upholds Assessment Due to Insufficient Documentation to Support Out-of-State Sourcing

• Wisconsin Determines StubHub is Liable for Sales and Use Tax

• Margin tax appointment (Texas)

• Massachusetts Supreme Judicial Court Affirms that DOR Cannot Enforce Wayfair Retroactively

Rate

• Columbia, Boone County propose sales taxes on recreational marijuana

• South Dakota Temporarily Lowers Sales Tax Rate

• Oklahoma: Local Rate Change Announced

• Temporary reduction in sales tax rate (South Dakota)

• US South Dakota cuts sales tax to 4.2%

• Alabama has the highest local sales tax in the nation

• All States: State and Local Tax Rate Changes Reported During March 13 – 17, 2023

• Income Tax Reductions Affect Sales Tax Rates and Rules

• US South Dakota votes to cut sales tax to 4.2%

• South Dakota legislators vote to lower state sales tax

• Texas: Reduced Sales Tax Rate Proposal

• Texas: Reduced Sales Tax Rate Proposal

• Georgia Issued Corrected Local Rate Change Announcement

• Georgia: Q2 of 2023 Local Rate Changes Announced

• Kansas Senate supports elimination of state, local food sales tax

• Boulder, Colorado Exempts Incontinence & Feminine Hygiene Products

• Electricity Rates by State

• New York: Publication on Local Tax Rates on Residential Energy Revised

• Evers proposes local sales tax hikes to fund government (Minnesota)

• Evers proposes local sales tax hikes to fund government (Minnesota)

• State and Local Sales Tax Rates, 2023

• Kodiak, Alaska: Annual Sales Tax Holiday occurring March 4, 2023

• Sales Tax Rates & Rules Trends 2023

• Ketchikan Gateway Borough & City of Ketchikan Sales Tax Holiday March 25, 2023

• Vertex 2022 End-Of-Year Rates and Rules Report

• Kansas lawmakers debate sales tax holiday

• US Rhode Island proposes sale tax rate cut

• Maryland Proposes Adjusting Sales and Use Tax Rate Based on Inflation

• Key Sales Tax Updates Affecting the Northeast

• State and Local Tax Rate Changes Reported During January 9 – 13, 2023

• 2022 Sales Tax Rates and Rules Report: Cities and Counties Rate Changes Continue

• 3 indirect tax trends to watch out for in 2023

• Ohio: Local Tax Rate Changes Announced

• All States: State and Local Tax Rate Changes Reported During January 2 – 6, 2023

• Arkansas: Local Tax Rate Changes Announced

• Indiana: January 2023 Gasoline Use Tax Rate Announced

• Sales tax rate on groceries in Kansas now reduced to 4%

• Virginia reduces grocery sales tax

• Virginia cuts sales tax on groceries and toiletries by 1.5% starting on the New Year

Real Estate/Immovable Property

• Iowa: Taxation of City Park Camp Accommodations Examined

Real Time Reporting/Continuous Transaction Controls

• 3 indirect tax trends to watch out for in 2023

Refund

• 3 Sales tax pitfalls facing manufacturers and wholesalers

• District of Columbia: Refund Denied Due to Failure to Provide Resale Certificate at Time of Purchase

• Arkansas: Tax Levied Under Amendment 101 Excluded from Manufacturing Machinery Refund

• Are Special State Tax Refunds Taxable? Maybe; It Depends!

• Sales tax refunds on software and hardware (Florida)

• Virginia Denies Sales Tax Refund for Reagents used by Medical Diagnostic Testing Provider

Registration

• South Dakota Removing Transaction Threshold for Remote Sellers

Reporting / Compliance

• Government Accountability Office Raises Three Concerns about U.S. Sales Tax System

• Rise of the Tax Machines: IRS algorithms are coming for you

• Record number of cities and counties seeking local sales taxes

• Sales Tax Astrology Service: Aligning Your Tax Stratetgy with the Stars

• Massachusetts Department of Revenue Releases Guidance on a De Minimis Exception for Use Tax on Rolling Stock

• Tennessee: Definition of “Industrial Machinery” Amended

• Use Tax Accrual: Manual and Automated Options to Keep You Compliant

• Recent state and local tax developments: California, Colorado, Florida, Louisiana, Montana

• Illinois: City Preempted from Imposing Tax on Tour Boat Company

• 2023 Sales Tax Trends: Three Policymaking Focal Points

• Texas amends service sourcing rule to rely on location of personnel, property

• New year, new sales tax doings

• Collection and Remittance of Tax on Credit Rating Services for Legal Entities Begins July 1, 2023 in Texas

• California Taxpayer Liable for Use Tax on Repair Parts Used for Out-of-State Customers

• 2023 U.S. Sales Tax Trends Whitepaper

• 3 Steps to Minimize Sales Tax Audit Risk

• Arkansas: Electronic Filing Required For Certain Taxpayers

• US Supreme Court rules unclaimed agent, teller’s checks escheat to state of purchase

• Wyoming: Electronic Filing and Payments Authorized

• Basics Of US Sales Tax For International Sellers

• Cities Want to Tax Streaming Video Services, but They’re Not Sure Why

• Sources of U.S. Tax Revenue by Tax Type

• U.S. IRS Extends Tax Relief for Disaster Areas

• Landis Case Underscores Tax Risks Tied to Digital Goods Sales – VATupdate

• Final U.S. Regulations on e-Filing for Businesses Published

• A history of sales tax

• General Accounting Office Raises Three Concerns about U.S. Sales Tax System

• 2023 Court Cases And Decisions: Sales And Use Taxes

• 3 Trending 2023 Sales Tax Issues

• Illinois: Adopted Rules Address Nexus, Occasional Sales, and Leveling the Playing Field for Retail Act

• California Requires Remittance of Collected Sales Tax Not Paid to Other States

• March 2023 sales tax due dates

• Retail delivery fee (Minnesota)

• KPMG reports: Arizona, Michigan, Texas, Wisconsin

• Sales Tax Compliance Prep for the Big Game

• The Pitfalls of Closing a Sales Tax Permit: What to Consider

• Transaction privilege tax (Arizona)

• Texas Revises Local Sales Tax Sourcing Rule

• A Simple Step-By-Step Guide To Stay Ahead Of Sales Tax Compliance

• Texas Comptroller of Public Accounts Adopts Local Tax Situsing Rule Amendments

• FERC orders allow public utility to defer sales tax through use of procurement subsidiary (multistate)

• State Tax Matters – January 2023 – Sales and Use Tax developments in the US States

• Consumption Taxes: An Overview

• What is the FairTax?

• What was new in December for state sales and use taxes

• Five Sales Tax Trends to Track in 2023

• State and local tax, technology-related developments (table, fourth quarter 2022)

• KPMG reports: Florida, Texas, Virginia

• San Francisco taxes – Filings and final payments due February 28, 2023

• Nevada: Regulations Related to Tax Treatment of Repair Work Performed For State Adopted

• The latest on sales tax on shipping charges (part 1)

• What Happens if You Don’t Collect Sales Tax

• Connecticut: FAQs Regarding Cannabis Tax Provided

• Alabama: Proceeds from Coin-Operated Amusement Machines Properly Subject to Tax

• California will require marketplace facilitators to collect information from high-volume sellers

• Indirect Tax Compliance Quarterly / Issue 05 / Dec 2022

• State-by-State Guide: How to Cancel Your Sales Tax Permit Account in Each State

• State Tax Policy Trends To Watch In 2023

• North Carolina Supreme Court Rules Against Sales and Use Tax Distinction in Wisconsin Taxpayer’s Appeal

• Connecticut: FAQs Provided Regarding Filing and Paying Taxes Electronically

• Year-end state and local tax updates (KY, MA, MI, NJ, NC, OH)

• Economic nexus overview – all states with sales tax now active

Supply of Services

• Kentucky now taxes a range of services

• Does Vermont Charge Sales Tax on Services?

Taxable Amount

• Ohio: Documentation Service Charges Excluded from Sales Price

• Pennsylvania High Court Rules on Application of Coupons in Sales Tax Calculations

• Pennsylvania Supreme Court Holds Two-Part Test Determines if Coupon Amount is Excluded from Purchase Price

• Pennsylvania Supreme Court: Coupon amounts included in tax base unless receipt specifies

• Pennsylvania Supreme Court Rules Coupon Amounts Are Not Subtracted from Sales Tax Base Unless Sales Receipt Adequately Describes Taxable Item and Coupon

• California: Guidance Provided on Application of Tax to Transactions in Which Payment is Made with Cryptocurrency

Taxable Transaction

• Columbia, Boone County propose sales taxes on recreational marijuana

• Utah to Impose Sales and Use Tax on Leases of Personal Property Effective July 1, 2023

• Mississippi to Charge Sales Tax on Computer Software and Digital Products July 1st, 2023

• Washington Appellate Court Holds that Taxpayer’s Services Qualify as Exempt Data Processing

• Mississippi: New Law Addresses Taxability of Computer Software Services and Remote Access

• Kentucky: New Law Revises Taxability of Services Including Computer Software Access Services

• New Jersey: Bulletin on Taxability of Leases and Rentals Revised

• Virtual services subject to sales and use tax (Rhode Island)

• Texas: Taxability of Sales and Purchases by Oil Well Servicing Company

• Is SaaS taxable in California?

• Wisconsin Tax Appeals Commission Holds Online Platform’s Secondary Ticket Sales are Taxable

• Maryland: List of Taxable Property and Services Issued

• Texas: Collecting and Remitting Tax on Credit Ratings of Legal Entities Now Begins as of July 1

• Is SaaS taxable in Kentucky?

• Kentucky now taxes a range of services

• Texas Letter Ruling Says Audiovisual and Videoconferencing Equipment and Services are Subject to Tax

• New York: SaaS Provider’s Vendor Management System Fees are Deemed Taxable Software Licensing

• Manufacturing machinery and equipment sales tax exclusion (Louisiana)

• Cloud-based storage plans not subject to sales tax (Louisiana)

• Tennessee Addresses the Distinction Between Taxable Software and Nontaxable Services

• Louisiana: Taxing Cloud Storage Prohibited by Internet Tax Freedom Act

• Illinois DOR Addresses Taxability of Software Provided Through Cloud-Based Delivery System

• Arizona: Appellate Court Affirms that Company’s Licensed Human Resources Software is Taxable

• Does Vermont Charge Sales Tax on Services?

• Tennessee Addresses the Distinction Between Taxable Software and Nontaxable Services

• Texas: Credit Ratings of Legal Entities are Taxable but Credit Ratings of Debt Obligations are Not

• California: Guidance Provided on the Application of Tax to the Purchase or Sale of Cryptocurrency

• South Dakota: Fair Market’s customers will greatly benefit from the elimination of the sales tax on groceries

• Florida DOR Ruling Addresses Taxation of Certain Online Learning Services

• Does Maryland Charge Sales Tax on Services?

• New year brings 6% sales tax to dozens of Kentucky services

• Hawaii Farm’s Guinea Grass is Subject to Tax

• Iowa Clarifies the Definition for Sales Tax Enforcement on Recreational Activities

• Minnesota Tax Department Clarifies Inclusion of Services in Sales Tax

• Which States Require Sales Tax on Software-as-a-Service?

Tax Authorities / Penalties

• Six tips to respond to a sales tax audit

• 3 Steps to Minimize Sales Tax Audit Risk

• Can the Fair Tax Act Stimulate Thoughtful Reform?

• Colorado DOR to Hold Work Group Meeting on New Law Imposing Added Penalties on Some Refund Claims

• What Happens if You Don’t Collect Sales Tax

• Alaska Announces Voluntary Disclosure Program

• North Carolina Supreme Court Reverses Lower Court to Uphold Constitutionality of Tax Imposition

• New Jersey Court: Sales Tax Should Not Be Included in Sentencing

Technology

• Sales Tax, Software, SaaS & Consulting- How They Work Together

• 3 Steps to Minimize Sales Tax Audit Risk
• What Happens if You Don’t Collect Sales Tax

Territory

• Update on local jurisdictions and sales tax

• California Requires Remittance of Collected Sales Tax Not Paid to Other States

Vouchers

• Pennsylvania High Court Rules on Application of Coupons in Sales Tax Calculations
• Pennsylvania Supreme Court Rules Coupon Amounts Are Not Subtracted from Sales Tax Base Unless Sales Receipt Adequately Describes Taxable Item and Coupon

War in Ukraine

• U.S. implementation of additional sanctions against Russia and Belarus
• U.S. final rule imposing new export control measures on Iran