A recently published New York State Division of Tax Appeals Administrative Law Judge (“ALJ”) determination, Matter of SecureWorks, Inc., DTA Nos. 828328 & 828329 (N.Y. Div. Tax App. ALJ Div. Jan. 14, 2021) (“SecureWorks”) concluded that New York sales tax applies to certain online security services when such services are provided with respect to devices located in New York. The ALJ concluded that most of the IT security services provided by the taxpayer, SecureWorks, Inc.,…
Last March, the Maryland General Assembly passed House Bill 732, which imposed a new “gross revenues tax” on digital advertising services. Governor Larry Hogan vetoed the bill in May. Earlier today, the Maryland State Senate completed the General Assembly’s override of the Governor’s veto, making the Maryland digital advertising tax the first of its kind in the United States. House Bill 732 adds a new tax (imposed in a new Title 7.5) to the Tax…
State legislators have already proposed a number of digital and data tax bills in 2021, some of which are new proposals while others reintroduce proposals from previous legislative sessions. The proposed bills fall into one of three categories: taxes on digital advertising services, taxes (or fees) targeting social media providers, and taxes on the sale or monetization of personal data. Most of the proposals are in the early stages, but a Maryland bill originally introduced last year is moving closer to a legislative vote on whether to override the governor’s veto.
Washington legislators may introduce a digital advertising tax bill in the state’s upcoming legislative session. See H-0028.1 (advance copy; not yet introduced). Washington’s potential legislation is the latest in a recent trend of digital advertising tax proposals (including in the District of Columbia, Maryland, Nebraska, New York, and West Virginia, none of which have become law as of the date of this blog post).