Telematics services, or the "Internet of Things", require Internet access and Internet related services in order to be provided. The Internet Tax Freedom Act dictates that in most instances, "Internet access" shall be exempt from sales tax. It remains to be seen how states will define telematics and seek to apply existing or new sales tax laws to these services. However, the Internet Tax Freedom Act - set to expire on November 1, 2014 absent Congressional action - may play a significant role in defining state authority to impose sales taxes on this rapidly evolving and pervasive new industry sector.
I recently sat down with Ean Hamilton, Contributing Blogger for Bloomberg BNA's Sales Tax Slice blog, to share my insights regarding the potential sales tax issues surrounding telematics. Read more...
Furthermore, I recently authored a detailed article on this topic, which was published in The Bloomberg BNA State Tax Report, and may be found on my website here...