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Sales Tax Update - April 2025

by Michael T. Dillon, Esq., Dillon Tax Consulting LLC

4/26/2025

Texas Comptroller Adopts Changes to Data Processing Services

Effective April 2, 2025, the Texas Comptroller effected changes to Texas Administrative Code Rule 3.330, addressing the definition and sales tax treatment of data processing services, most specifically (1) refining what constitutes and does not constitute data processing services, and (2) adopting an exclusion for data processing that is sold for a single charge with another service if the data processing service (a) does not have a separate value and (b) is ancillary to the other service. Data processing is defined as “the computerized entry, retrieval, search, compilation, manipulation, or storage ...

Sales Tax Update – March 2025

Michael T Dillon, Dillon Tax Consulting LLC

3/3/2025

North Carolina Clarifies Subscriptions to Access Software vs. Digital Content

In a November 1, 2024 decision, the North Carolina Department of Revenue determined that a subscription to access digital content is taxable, whereas the same subscription to access nontaxable content is not subject to sales tax. Taxpayer, for a subscription fee, provided users with access ...

Maryland imposes sales and use tax on the sale of software and digital products

Michael T Dillon, Dillon Tax Consulting LLC

3/9/2021

Maryland will begin imposing sales tax on the sale of digital products, starting March 14, 2021. This is an abrupt change in tax policy for a state that has historically steered away from imposing sales tax on electronically delivered and remotely accessible software, digital products, and cloud-based data and information services. These changes may be ...

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 ...

Secured use of overpayments as periodic offsets against audit liability findings, nearly eliminating liability and reducing related interest on net tax resulting.

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Secured use of overpayments as periodic offsets against audit liability findings, nearly eliminating liability and reducing related interest on net tax resulting.

Nonprofit Organization

Contact Dillon Tax Consulting