Joining a dating app may soon have tax implications in Washington. On April 8, 2025, House Bill 2071 was introduced with the intent of placing a monthly excise tax of $1 per resident user, to be paid by the owner of an âonline dating application.â The revenue generated would be deposited into a state-operated domestic violence services account to fund support and advocacy programs across the state. The proposed tax would be levied on…
The Arizona Department of Revenue (âDepartmentâ) recently made public Letter Ruling 16-011 (âRulingâ), which concluded that a taxpayerâs gross income from electronic transaction processing services that involved the use of software was not taxable for Arizona transaction privilege tax (âTPTâ) purposes.  The Department opined that the electronic transaction processing services were not taxable as a rental of tangible personal property because the taxpayerâs customers did not have the âexclusive controlâ over the software required for a taxable rental. This Ruling is significant because the Department, like revenue departments in several other states (including New York), has historically concluded that online services involving the remote access or use of software were subject to the TPT as a rental of tangible personal property, without analyzing the degree of control the customer had over the software.
Beginning in October 2015, the New York State Department of Taxation and Finance has been releasing draft regulations that will implement New Yorkâs extensive corporate franchise tax reform. The initial draft regulations addressed three topics: nexus, sourcing of other services and other business receipts, and sourcing of receipts from sales of digital products. The draft nexus regulations incorporate the new tax lawâs economic nexus provisions. (See N.Y. Tax Law Section 209.1(a).)Â The draft sourcing regulations…