Mary Benton was a panelist during this webinar sponsored by BNA. State tax issues associated with relatively recent technological advances, such as digital products and cloud computing, have generated a substantial number of issues and questions. While some states have addressed certain areas in an adequately clear manner, most states have not. What should businesses - as sellers and/or buyers - do to reduce their possible exposure to tax assessments and related penalties? This presentation focused on identifying the important issues, describing what initiatives certain states have taken in attempts to address those issues, and alternative actions business can take in response to - or in the absence of - such initiatives.
The objectives of this 90-minute audio discussion included providing participants with a conceptual understanding and practical application of the following.
- States' jurisdiction over sellers for sales and use tax collection obligations
- Constitutional standard
- States' attempts to require remote sellers to collect the tax
- Federal legislative activity
- Sales taxability of various items
- Digital products
- Cloud computing
- Internet-delivered services
- Sourcing of transactions for sales tax purposes
- States' jurisdiction over remote businesses for business activity tax purposes
- Constitutional standard
- States' attempts to expand their jurisdiction
- Federal legislative activity
- Determining sourcing of receipts from BAT apportionment purposes
- Traditional rules
- Market-based sourcing issues
Upon completion of this program, participants were able to:
- Identify sales and use tax issues as buyers and/or sellers
- Evaluate alternative structures to preclude unintended tax exposure
- Take appropriate action to minimize any tax exposure
- Consider alternative business arrangements to contain potential tax liabilities