Ryan Announces Louisiana Issues Bulletin Clarifying Suspension of Policies Related to Digital Products

Mar 07, 2011, 10:22 ET from Ryan, LLC

BATON ROUGE, La., March 7, 2011 /PRNewswire/ -- Ryan, a leading global tax services firm with the largest indirect tax practice in North America, today announced that the Louisiana Department of Revenue ("Department") has issued Revenue Information Bulletin No. 11-005 ("11-005") to answer frequently asked questions regarding access fees charged for use of a website or canned software and to address tax on pay-per-view and on-demand programs.

The Department issued 11-005 in response to questions generated by a November announcement that the Department was suspending two of its revenue rulings. Suspended Revenue Ruling No. 10-001 provided that tax was due on access fees or subscription fees paid for the use of a website or software. In addition, Suspended Revenue Information Bulletin No. 10-015 provided that Louisiana sales tax was due on fees paid to cable or satellite television services for pay-per-view and/or on-demand programs.

The Department is forming a working group of Department employees and industry and taxpayer representatives to assist the Department in developing policy regarding the taxation of certain digital transactions, including access fees for online software and pay-per-view fees. June 30, 2011 is the target day for the group's findings and recommendations.

In the meantime, sales or use tax is due on amounts paid for the sale or use of downloaded digital products, including books, music, and games that are transferred to customers. In addition, Louisiana sales or use tax is due when customers purchase movies or other programs for permanent download. However, Louisiana sales or use tax is not due on fees for the use of a website or software and charges for pay-per-view or on-demand programs.

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Ryan is a leading global tax services firm, with the largest indirect tax practice in North America and the seventh largest corporate tax practice in the United States.  Headquartered in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning.  In 2010, Ryan received the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service.  Empowered by the award-winning myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 900 professionals and associates serves many of the world's most prominent Fortune 1000 companies.  More information about Ryan can be found at www.ryan.com.