btfitz_20140506_825_M

Eyes on Ecom Law

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New Hampshire Does Not Tax Internet Access

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Reaffirming its state’s anti-tax DNA, the New Hampshire legislature confirmed what some state tax practitioners have been arguing all along: the New Hampshire communications services tax does not apply to Internet access charges. (New Hampshire does not have a sales tax.) On June 21, 2012, the Legislature enacted a statute, 2011 NH 1418, that bars...

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Is the EU About to Break the Internet?

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In a move that has the potential to do severe damage to the e commerce user experience, some E.U. countries are beginning to implement the E.U. privacy directive on internet cookies (small information files which websites use to remember customers and preferences). In principle, the so-called “Cookie Directive” requires that website users receive explanations of...

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Some Preliminary Thoughts On The New Maine Board Of Tax Appeals

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The Maine Legislature recently voted to create a new, three-member Maine Board of Tax Appeals (MBTA). The MBTA replaces the Independent Appeals Office that the legislature devised in 2011, which had yet to take effect, and will serve as an independent entity within the Department of Administrative and Financial Regulation. The MBTA is not part...

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Is It Raining In Pennsylvania: Sales Tax on Cloud Computing Services?

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I recently wrote a blog post on the new Vermont law on sales tax on cloud computing services, in which the state placed a moratorium on taxation of software as a service (“SaaS”). Pennsylvania, however, has decided to take a different approach to cloud computing. In Legal Letter Ruling No. SUT-12-001 (May 31, 2012), the...

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Some Sunshine in Vermont: Sales Tax on Cloud Computing Services

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I recently authored an article in State Tax Notes entitled “Let the Sunshine In: The Age of Cloud Computing”, which describes the murky area of state taxation of cloud computing services. On May 24, 2012, Vermont brought some sunshine to this cloudy area. Vermont Governor Peter Shumlin signed a bill that temporarily exempts charges for...

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FTC Report outlines Consumer Privacy Framework, urges self-regulation

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Following on the heels of the White House’s “Consumer Privacy Bill of Rights,” (recently discussed in this space), the Federal Trade Commission released its own final report on Consumer Privacy last month: “Protecting Consumer Privacy in an Era of Rapid Change, Recommendations for Businesses and Policymakers.” The issue of consumer privacy online continues to receive...

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Illinois Circuit Court Enters Written Order That Illinois Affiliate Nexus Law Is Unconstitutional

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On May 11, 2012, Judge Robert Lopez Cepero of the Illinois Circuit Court for Cook County, entered a written order (“May 11 Order”) granting summary judgment to the Performance Marketing Association (“PMA”) in its challenge to the 2011 Illinois affiliate nexus statute. The Court ruled that the Illinois law fails the “substantial nexus” requirement for...

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Yet Another State (Georgia) Adopts a Click-Through Nexus Law

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On April 20, 2012, Georgia Governor Nathan Deal signed legislation revising the definition of “dealer” in the Georgia statute. Under Georgia law, a dealer is required to collect and remit sales/use tax on all taxable sales to Georgia residents. The first change to the dealer definition is to adopt a so-called “click-through nexus” law (or...

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Court Rules that the Illinois Internet Affiliate Nexus Law is Unconstitutional and Violates the Internet Tax Freedom Act

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Yesterday (April 25, 2012), Judge Robert Lopez Cepero of the Illinois Circuit Court for Cook County granted summary judgment in favor of the Performance Marketing Association (“PMA”) in its constitutional challenge to the Illinois “Internet affiliate nexus” statute, Public Act 96-1544 (the “Act”), which took effect in July 2011. Judge Cepero ruled from the bench,...

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Internet Retailers and Digital Businesses Should Understand the State Tax Risks Associated with Telecommuting Employees

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In the increasingly “officeless” environment of the digital workplace, Internet retailers, cloud computing providers and other remote sellers should be aware of the sometimes unexpected state tax consequences associated with employees who telecommute. Although there are few reported court decisions, a vast majority of the states assert that having employees located in the state engaged...

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