The California Senate has passed SB 1327, which would impose a 7.5% tax on gross receipts of data extraction transactions for online platforms with annual gross receipts of $2.5 billion or more. The tax would apply when the platform sells user information or advertising. AB 886, another bill, has been amended and passed the Senate Judiciary Committee. It would require certain large platforms to compensate digital journalism providers or participate in arbitration based on advertising revenue. The bill’s definition of a “covered platform” was clarified to exclude companies that earn less than 50% of annual revenue from their online platform, advertising, and search services.
In North Carolina, Session Law 2024-28 has repealed the 200-transaction threshold for remote sellers and marketplace facilitators. Effective immediately, retailers have a sales and use tax collection responsibility if they exceed $100,000 in gross sales from remote sales sourced to the state, including marketplace-facilitated sales.
In Vermont, HB 887 has been enacted, imposing sales and use tax on prewritten software accessed remotely (SaaS). Effective July 1, 2024, the definition of tangible personal property is amended to include prewritten computer software, regardless of how it is paid for, delivered, or accessed. This bill repeals previous legislation enacted in 2015.
These updates and changes in tax laws have implications for online platforms, remote sellers, and SaaS providers in California, North Carolina, and Vermont.
Source PwC
