Tag Archives: Department of Revenue

ILN Today Post

South Carolina: Department of Revenue’s injunction asks the court to require Amazon to pay up

At the end of August, we posted an article addressing the tax dispute between the South Carolina Department of Revenue (DOR) and Amazon Services, LLC, an affiliate of Amazon.com, Inc. In June, the DOR sent a letter to Amazon alerting the internet retailer that it owed the state $12.5 million in unpaid sales and use taxes, plus penalties and interest, for its sales through third party vendors.

Fast forward a few months, and the DOR has filed a motion for injunctive relief, asking the Administrative Law Court to “require Amazon to collect taxes owed on all of its South Carolina retail sales (including sales of third-party owned items)-the same taxes owed by every retailer that makes retail sales in South Carolina.” The Nov. 8, 2017 motion concedes that Amazon pays some of its tax obligations, but not those on sales of “third party owned items.”

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ILN Today Post

Pennsylvania: Fight to block soda tax goes to the state Supreme Court

Last December, a trial court dismissed a lawsuit that a group of stakeholders filed against the city of Philadelphia and the Department of Revenue, as we described at the time. In their complaint, the plaintiffs alleged that the so-called beverage tax, the imposition and collection of which began on Jan. 1, 2017, unlawfully duplicated the already-existing sales and use tax on soft drinks in violation of the Pennsylvania Sterling Act; that it unlawfully circumvents the state taxing power; and that it violates the state constitution’s uniformity clause. The uniformity clause provides that “[a]ll taxes shall be uniform, upon the same class of subjects, within the territorial limits of the authority levying the tax, and shall be levied and collected under general laws.”

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Pennsylvania: Department of Revenue retracts controversial letter ruling

Earlier this month, we explained the Pennsylvania Department of Revenue’s (Department) February 9, 2017, Letter Ruling SUT-17-001, which clarified the Department’s interpretation of Act 84 of 2016 (the Act). Among other things, the Act broadened the definition of “tangible personal property” to expand the list of items subject to the state’s 6 percent sales and use tax. The Letter Ruling made it clear that the tax would apply to canned computer software and related maintenance and support services, along with books, applications, games, music and audio.

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ILN Today Post

Pennsylvania: Department of Revenue addresses sales and use tax issues

In a February 9, 2017, Pennsylvania Department of Revenue (Department) Sales and Use Tax Letter Ruling (Ruling), the Department clarified its position on the extent to which the state’s sales and use tax applies to support services for canned computer software. The Department ultimately concluded that all support services are subject to the tax when they are “transferred in a sale at retail or made use of after being obtained in a purchase at retail.”
In its discussion, the Department first noted that Pennsylvania’s 6 percent tax applies to the retail sale, or use of, tangible personal property, and some services. Included in the definition of “sale” is the granting of a license to use or consume the property, regardless of the means of the transfer, and regardless of whether the granting of the license is absolute or conditional.
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