The states are getting SaaS-y 💅

How is it June already???

Hope the first half of the year hasn’t been too taxing for you.

Hey, I promised you puns. So there ya go.

Today, you’ll get the inside scoop on (1) recent sales tax updates (2) SaaS and digital goods news and (3) our first ever video Q&A.

SALES TAX NEWS

1️⃣ A business in Rhode Island was found liable to pay the full amount rather than a reduced sum after they breached the terms of a settlement agreement over unpaid sales and use tax.

2️⃣ Oklahoma is preparing to end a moratorium barring counties and municipalities from increasing local sales taxes on food.

3️⃣ A New Jersey Assembly committee is pushing to allow states to exempt oral healthcare products from sales tax.

4️⃣ Under regulatory changes proposed by the state Tax Commission, Nevada would clarify sales tax collection requirements imposed on remote sellers, marketplace sellers, and marketplace facilitators.

5️⃣ The Streamlined Sales Tax Board council approved a recommendation for States to provide remote sellers with at least 30 days to begin collecting sales tax after crossing economic nexus thresholds, and to use gross sales to calculate those thresholds.

6️⃣ The former president of a corporation that was once based in California was deemed the responsible party for the corporation's sales tax liability.

7️⃣ In recent bills introduced in the state House of Representatives, Michigan would amend its sales and use tax regime to include language clarifying that vendors who use online delivery platforms are responsible for collecting and remitting the taxes.

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BRING ON THE SAAS 💅

This month, quite a lot has happened when it comes to sales tax on SaaS, digital goods, and digital advertising. Let’s dive in.

A company in New York owes sales tax on sales of software that helped businesses manage temporary employees. The state Tax Appeals Tribunal said the transactions counted as tangible personal property instead of nontaxable services.

Learn about sales tax on SaaS →

In a new proposal by the Streamlined Sales Tax Governing Board, States could apply the highest, lowest, or a blended state and local tax rate inside a five-digit ZIP code area to digital goods sales when buyers aren't required to provide their full address.

More on sales tax on digital goods → 

According to a new bill passed by a key Senate committee, California can now levy its 7.25% state sales and use tax on large online companies with digital advertising revenue above $2.5 billion.

Get the full scoop on CA sales tax→

PARTNER SPOTLIGHT

Tax CSA specializes in streamlining complex processes, minimizing audit exposure, and enhancing productivity and efficiency for online businesses.

Interested in learning more? Get in touch or reply to this email for a direct intro to their team.

YOUR QUESTIONS, ANSWERED!

Q (Maya): How are product taxability and PTCs monitored via sales tax software?

A: Check out the video below for a behind-the-scenes explanation from Kyle Gashler, Software Engineer at Zamp.

Thanks for reading along.

I’ll be back next month with more sales tax shenanigans.

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Until next time’s 🗑 …

Rohit & the Zamp team