As part of the New York Budget Legislation (“S.B. 4009 / A.B. 3009”), the Commissioner of the New York State Department of Taxation and Finance (“Commissioner”) will be given the right to appeal certain types of decisions from the New York State Tax Appeals Tribunal (“Tribunal”). Currently, only taxpayers have the right to appeal Tribunal decisions. This provision is on the cusp of becoming law after clearing both legislative chambers on May 1, 2023. As…
The Florida Department of Revenue issued a Technical Assistance Advisement concluding that a taxpayer’s online learning services were subject to the state’s Communications Services Tax (“CST”) as a “video service” (statutorily defined as “the transmission of video, audio, or other programming service to a purchaser …” and includes “digital video”), while the taxpayer’s sales of an internal email service were nontaxable “information services.” Florida Dep’t of Revenue, Technical Assistance Advisement 22A19-002R (Oct. 7, 2022). The…
The Massachusetts Supreme Judicial Court held that an online retailer was not required to collect and remit the state’s sales and use tax prior to the United States Supreme Court’s 2018 decision in South Dakota v. Wayfair because its use of apps, cookies, and content delivery networks (CDNs) did not create “physical presence” nexus, as required prior to the Wayfair decision, and the Wayfair “economic nexus” standard could not apply retroactively. U.S. Auto Parts Network,…
On October 17, 2022, a Maryland state judge in the Circuit Court of Anne Arundel County struck down the state’s Digital Advertising Tax (“Digital Ad Tax”) as violating the Internet Tax Freedom Act (“ITFA”) and the Commerce Clause and First Amendment of the U.S. Constitution. Comcast of California/Maryland/Pennsylvania/Virginia/West Virginia LLC, et al. v. Comptroller of the Treasury of Maryland, Case No. C-02-CV-21-000509 (Md. Cir. Ct. Anne Arundel Cnty.). The judge issued her ruling from the…