KPMG reports: Colorado (online learning platform); Virginia and Washington (bag tax); West Virginia (streaming services)

KPMG’s This Week in State Tax focuses on recent state and local tax developments.

KPMG’s This Week in State Tax focuses on recent state and local tax developments.

KPMG’s This Week in State Tax—produced weekly by KPMG’s State and Local Tax practice—focuses on recent state and local tax developments.

  • Colorado: The Department of Revenue applied the “true object” test and ruled that a taxpayer was selling tangible personal property. The taxpayer provided customers access to an online learning platform offering a streaming video lesson, a written transcript of that lesson, and access to online tutors. While the subscription plans also included service elements, in the Department of Revenue’s view, the learning plan products were more analogous to the sale of tangible personal property and were subject to state and state-administered sales and use tax. Read a September 2021 report

  • Virginia:  As early as January 1, 2021, Virginia localities may impose the Virginia disposable plastic bag tax by ordinance. The tax is five cents on each disposable plastic bag provided to purchasers by any grocery store, convenience store, or drugstore in each locality that has adopted a bag tax ordinance. The bag tax will be administrated by the Department of Revenue in the same manner as sales and use taxes, and retailers that collect the tax will be entitled to a dealer discount. Read a September 2021 report

  • Washington: Effective October 1, 2021, certain types of plastic bags are banned, and retailers are required to collect an eight-cent charge on every compliant paper and plastic bag provided to customers. The eight-cent charge is retained by the collecting retailer and is subject to retail sales tax. Read a September 2021 report

  • West Virginia: The Department of Revenue issued guidance clarifying that streaming services are subject to sales and use tax. Under West Virginia law, all sales of services are subject to sales and use tax unless there is a specific exception or exemption. There is no exemption for streaming services. Read a September 2021 report

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.