Sales Tax Treatment of Digital Property - A Bright Line in Some States, But Murky in Many More Say Experts

ARLINGTON, Va., April 11, 2011 /PRNewswire-USNewswire/ -- State tax issues associated with relatively recent technological advances, such as digital products, cloud computing, and so-called "software as service" have generated a substantial number of issues and questions.  While some states have begun to address certain areas, many states have not. What should businesses – as sellers and/or buyers – do to reduce their possible exposure to tax assessments and related penalties?  These and other complex questions will be addressed in a new BNA Tax & Accounting webinar, E-Commerce: The Sales Tax Treatment of Digital Property, led by state tax experts Arthur Rosen and Mary Benton.

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This presentation will focus 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.  In 60-90 minutes, Rosen and Benton will cover:

• 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

"As electronic commerce continues to expand as a result of new types of digital property and online services, it's important to understand the steps that some cash-strapped states are aggressively pursuing  to make some  types of previously untaxed transactions taxable," said Steven Roll, assistant managing editor with BNA Tax & Accounting's State Tax group. "In some cases, these policy initiatives have taken the form of administrative pronouncements, which tend to attract less attention than the enactment of legislation.

"Arthur Rosen and Mary Benton are both engaging speakers and well respected thought-leaders who do a great job of explaining the compliance challenges posed by some of these state policies and why they are likely to be the subject of litigation in years to come," Roll added.

About the Speakers

Arthur R. Rosen is a partner in the law firm of McDermott Will & Emery LLP and is based in the Firm's New York office.  His practice focuses on tax planning and litigation relating to state and local tax matters for corporations, partnerships and individuals.  Formerly the Deputy Counsel of the New York State Department of Taxation and Finance, as well as Counsel to the Governor's Temporary Sales Tax Commission and Tax Counsel to the New York State Senate Tax Committee, Mr. Rosen has held executive tax management positions at Xerox Corporation and AT&T.  In addition, he has worked in accounting and law firms in New York City.

Mr. Rosen is a past chair of the State and Local Tax Committee of the American Bar Association's Tax Section and a past chair of the National Association of State Bar Tax Sections.  He is a member of the Executive Committee of the New York State Bar Association's Tax Section, and has served as co-chair of its Committees on New York State Tax Matters, New York City Tax Matters, and State and Local Tax Matters.  He also served as President and Chairman of the NYU Tax Society and is an active member of the Institute for Professionals in Taxation.  Mr. Rosen was a member of the steering committee of the NTA Communications and Electronic Commerce Tax Project.  He founded and chairs the annual week-long "Introduction to State and Local Taxes" program, as well as the "State and Local Taxation II" program, offered at New York University.  Mr. Rosen serves as a member of the New York State Commissioner of Taxation and Finance's advisory council, the New York City Commissioner of Finance's advisory council and the New York City Tax Appeals Tribunal's advisory council.

Mary T. Benton, is a partner at Alston + Bird, LLP, and concentrates her practice on controversy and litigation matters involving property, sales/use and income taxation. She also maintains a multistate transactional practice involving all tax types. She is a member of the firm's Economic Incentives Team, which assists clients in obtaining both negotiated and statutory incentives throughout the Southeast.

Ms. Benton has represented clients in property tax disputes in numerous jurisdictions, appearing before boards of equalization and arbitration panels, litigating matters in both bench and jury trials and practicing before the appellate courts. She has also managed multistate controversy and litigation matters involving sales, income and transfer taxes. Ms. Benton has significant experience in representing clients in negotiations of voluntary disclosure agreements with state revenue departments. She has been involved in numerous multistate transactions as state tax counsel, negotiating tax provisions and planning for state tax minimization.

E-Commerce:  The Sales Tax Treatment of Digital Commerce will take place April 14, 2011, from 12:30 pm - 2:00 pm, ET.  To register for this webinar and obtain further information about CLE and CPE credits, go to http://www.bnatax.com/ecommerce/?open&cmpid=tmtxpr2011 or call 1-800-372-1033, menu Option 6, then Option 1.  The per site fee is $249.

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About BNA Tax & Accounting Webinars

BNA Tax & Accounting is the foremost source of tax and accounting research, news, practice tools, and guidance for tax attorneys, CPAs, corporate tax managers, estate planners, and financial accountants.  Designed for today's busy practitioners, our webinars offer the same expertise and relevance that are the hallmark of all BNA Tax & Accounting resources. Conference attendees have the opportunity to ask the speakers questions, and may be eligible to earn CLE or CPE credits - all from the convenience of their own office or conference room.

SOURCE BNA Tax & Accounting