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Contractor’s Revenue Recognition Reminder Checklist
Doeren Mayhew’s state and local tax (SALT) advisors share the latest SALT news across the country to keep your business in the know. Below is the latest news related to SALT legislation:
Maryland’s Senate and House of Delegates overrode Governor Larry Hogan’s veto on imposing a digital advertising tax in February 2021, meaning businesses who specialize in digital advertisement services will be subject to taxes moving forward. The bill defines “digital advertising services” as advertisement services through a digital interface, including software, websites or applications, as well as banner advertising, search engine advertising, interstitial advertising and other advertising services.
Taxes will be imposed on businesses with global annual gross revenues of at least $100 million and deriving gross revenue from digital advertising in Maryland of at least $1 million. Tax rates will vary from 2.5% to 10%, depending on the taxpayer’s global annual gross revenue. The new tax is applicable to all taxable years beginning after Dec. 31, 2020, and the first estimated quarterly payment (at least 25% of the “reasonably estimated” tax based on 2021 Maryland digital advertising tax revenues) is due to the state’s Comptroller by April 15, 2021.
Alabama has already made drastic tax system changes this year. Here are seven notable revisions for tax years beginning on and after Jan. 1, 2021:
If you are domiciled or conduct business in Maryland or Alabama and have questions about how these new tax provisions may impact your business, contact Doeren Mayhew’s dedicated SALT advisors today.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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