Maryland businesses are getting caught by surprise by a recently enacted law that subjects digital products to sales tax. Digital products may include movies, books, software, and online training and it’s not always straightforward to determine what’s taxable.
The SALT cap has been a contentious issue ever since it was passed as part of 2017’s Tax Cuts and Jobs Act.
Few contractors give much thought to state sales tax when they’re installing property improvements for a customer.
Exposure to state tax has been steadily increasing in recent months. From the Wayfair Supreme Court case in 2018 to mounting financial pressures from COVID-19, states are looking at all options to collect revenue they are entitled to.
One of the little-known provisions of the House of Representatives’ HEROES Act could have big impacts for high-income taxpayers and small businesses later on as tax policies continue to be reevaluated.
The U.S. Supreme Court has fundamentally altered Wayfair, Inc., and other online retailers’ ability to offer items at a lower cost than their brick and mortar counterparts. States can now require online retailers to collect sales tax from every customer no matter if they have a physical location in the shopper’s state, leaving online consumers to pay more for the items they buy.
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