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Sales Tax Update – March 2024

Michael T Dillon, Dillon Tax Consulting LLC
3/21/2024

On March 11, 2024, Delegate David Moon (D) introduced H.B. 1515 to the House Ways and Means Committee of the Maryland General Assembly, through which he proposed to broadly expand the sales tax base to cover many services, while reducing the sales tax rate from 6% to 5%.  Delegate Moon proposed that expanding the sales and use tax to include services could result in a total revenue increase of approximately $1.4 billion in fiscal 2025 and $4.2 billion in fiscal 2029. This would significantly offset any rate reduction, resulting is significant increases to the State’s General ...

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Sales Tax on Cloud-computing: Rulings Also Mean More Uncertainty and Unpredictability

Dillon Tax Consulting
12/13/2016

A number of sales tax decisions in Tennessee, Indiana and Illinois serve to remind us all of the uncertainty involving cloud computing transactions, and the importance to seek guidance from tax practitioners regarding your specific facts. While each taxpayers’ facts involved the access to and/or provision of cloud-based services, the transactions for each were ...

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Florida Sales Tax Case Presents Opportunity for Supreme Court to Revisit the Quill Nexus Standard

Dillon Tax Consulting
11/8/2016

In a petition filed with the Supreme Court of the United States on October 24, 2016, American Business USA Corporation (American Business) seeks a writ of certiori to review the judgment of the Supreme Court of Florida. [American Business USA Corp. v. Florida Department of Revenue, U.S. Supreme Court, Dkt. 16-567, petition for certiorari ...

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Texas Court says the “Essence of Transaction” involving a Provider’s technology platform is not “Data Processing”

Dillon Tax Consulting
5/10/2016

In a decision involving the true object, or “essence of the transaction” test, the Texas court of appeals upheld the trial court’s decision in favor of the taxpayer refund claim for sales tax assessed on the provision of bill pay services. In Hegar v. CheckFree Services Corporation, NO. 14-15-00027-CV (Tex. Ct. App., April 19 ...

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