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Multistate Tax  |  June 3, 2022
State Tax Matters
State Tax Matters
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Sales/Use/Indirect:
Maryland: New Law Amends Definition of Taxable Digital Products to Provide More Exclusions

H.B. 791, became law w/o governor’s signature (pursuant to letter dated May 27, 2022); Cross-filed S.B. 723, became law w/o governor’s signature (pursuant to letter dated May 27, 2022). Following Maryland’s 2021 enactment of legislation that subjects certain defined “digital products” to Maryland sales and use tax [see H.B. 932 (2020), and State Tax Matters, Issue 2021-7, for more details on this new law], as well as subsequently enacted legislation in 2021 that includes some taxable “digital product” carveouts [see S.B. 787 (2021), and previously issued Multistate Tax Alert for more details on these law changes], 2022 legislation that is set to take effect on July 1, 2022, amends the definition of digital products by including some additional examples of items that do not constitute taxable digital products. Under the 2022 legislation, the following do not constitute digital products:

  • A product having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities where the purchaser holds a copyright or other intellectual property interest in the product, in whole or in part, if the purchaser uses the product solely for commercial purposes, including advertising or other marketing activities; or
  • Computer software or software as a service (SaaS) purchased or licensed solely for commercial purposes in an enterprise computer system, including operating programs or application software for the exclusive use of the enterprise software system, that is housed or maintained by the purchaser or on a cloud server, whether hosted by the purchaser, the software vendor, or a third party.

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Joe Carr (McLean)

Managing Director

Deloitte Tax LLP

 

Ryan Trent (Charlotte)

Senior Manager

Deloitte Tax LLP

 

Michael Spencer (Washington, DC)

Manager

Deloitte Tax LLP

 



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In this issue

Income/Franchise
New Hampshire: Proposed BPT Rules Reflect Law Changes, Including Single Sales Factor Apportionment

Oklahoma: New Law Provides Option for Immediate and Full Expensing of Qualified Property

Vermont: New Law Adopts Single-Sales Factor, Repeals “80/20” Provisions, Moves to Finnigan

Sales/Use/Indirect
Indiana: Updated Bulletin Addresses Remote Seller and Marketplace Facilitator Laws

Louisiana: New Law Equalizes Interest Rates on Local Tax Assessments and Refunds

Maryland: New Law Amends Definition of Taxable Digital Products to Provide More Exclusions

Oklahoma: New Law Broadens Scope of Marketplace Facilitator Collection and Remittance Obligations

Virginia Department of Taxation Says Online Banner Advertisements Alone Do Not Impart Nexus

Miscellaneous
New Jersey Supreme Court Generally Upholds Validity of Jersey City Payroll Tax on Nonresident Employees

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