COVID NEW TAX TRENDS

What’s happening? States are trying a variety of measures to address tax revenue deficiencies including:

• MA wants to tax income earned while working from home in another state for its workers
• VT wants to expand its tax base by paying people to move there
• LA and NE both tried to tax services during the spring legislative sessions, both failed
• MD succeeded in passing a bill to tax digital ads (there’s now a court case)
• KS & WY are trying tot tax streaming services
• CO GA & MD applied their sales tax to some digital content

Why is this important? It’s not just the U.S. The UK expanded its VAT to more items.

How will this be important? Its looking like passive actions like broadening tax bases seem to have the most longevity

CPA Practice Advisor | Top Trends in State Sales Taxes and Policies