Vermont will impose its sales and use tax on sales of remotely accessed software effective July 1, 2024 (Bill H.887). Vermont’s governor originally vetoed the bill, but the legislature overrode the veto on June 17, 2024. Vermont’s definition of “tangible personal property” includes “prewritten computer software,” but the legislature had enacted an exemption for remotely accessed software in 2015. The new legislation expands the “tangible personal property” definition to cover prewritten computer software “regardless of…
The Illinois False Claims Act (“IFCA”) has been perpetually abused by parasitic litigants seeking to force businesses into unwarranted tax claims. In the latest example, The People ex rel. Stephen B. Diamond v. Henry Poole & Co., Ltd., the Illinois Appellate Court (the “Court”) rejected an action filed by a well-known IFCA litigant against a UK-based tailor, Henry Poole & Co (“Poole”), for failure to collect Illinois use tax on custom clothing sold and shipped…
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,…
A new lawsuit filed by Wayfair, LLC in Jefferson County Court (Colorado) seeks to address a question left open by the U.S. Supreme Court’s landmark 2018 Wayfair decision that permits states to impose a sales or use tax collection obligation based on an economic nexus threshold: Does this decision apply to locally-administered sales or use taxes? While many localities have asserted that the same economic nexus standards should apply at the state and local levels,…