Jonathan C. Hague
Subscribe to Jonathan C. Hague's PostsJonathan C. Hague focuses his practice on state and local tax matters. He assists businesses and individual taxpayers with state and local tax controversies, compliance and multistate planning opportunities across a variety of tax types, including income, sales and use, and tax credits. Jonathan also works closely with several of the Firm’s taxpayer coalitions focused on specific state tax policy issues such as the taxation of digital goods and services. Read Jonathan Hague's full bio.
Washington’s Digital Ad Tax Enacted: Is Litigation Now Inevitable?
By Stephen P. Kranz, Mark Nebergall and Jonathan C. Hague on May 21, 2025
Posted In Allocation/Apportionment, Constitutional Issues, Nationwide Importance, Sales Tax, Tax Base, Washington
On May 20, 2025, Washington Governor Bob Ferguson signed into law Senate Bill (SB) 5814, a sweeping tax bill that expands Washington’s retail sales and use tax to digital advertising services and a range of high-tech and IT services. The new law takes effect for sales occurring on and after October 1, 2025. As we...
Continue Reading
Washington’s Digital Ad Tax: A Lawsuit Waiting To Happen?
By Stephen P. Kranz, Mark Nebergall and Jonathan C. Hague on May 1, 2025
Posted In Allocation/Apportionment, Constitutional Issues, Nationwide Importance, Sales Tax, Tax Base, Washington
On April 27, 2025, the Washington Legislature delivered to Governor Bob Ferguson’s desk Senate Bill (SB) 5814, a sweeping tax bill that, among other changes, would expand the state’s retail sales and use tax to sales of digital advertising services and a range of high-tech and IT services. The bill now awaits the governor’s signature,...
Continue Reading
Let the Shakedowns Begin: Tax False Claims Legislation in California
By Stephen P. Kranz, Mark Nebergall and Jonathan C. Hague on Apr 22, 2025
Posted In California, Constitutional Issues, False Claims Act, Nationwide Importance
Legislators in Sacramento, California, are mulling over one of the most (if not the most) troubling state and local tax bills of the past decade. Senate Bill (SB) 799, introduced earlier this year and recently amended, would expand the California False Claims Act (CFCA) by removing the “tax bar,” a prohibition that exists in the...
Continue Reading
Kentucky Legislature Ends Judicial Deference To State Agencies
By Stephen P. Kranz, Michael J. Hilkin, Mark Nebergall and Jonathan C. Hague on Apr 2, 2025
Posted In Kentucky, Nationwide Importance
In a realignment of judicial review standards, the Kentucky General Assembly overrode Governor Andy Beshear’s (D-KY) veto of Senate Bill (SB) 84, effectively abolishing judicial deference to all agency interpretations of statutes and regulations. This development marks a shift in administrative law in the Commonwealth. A RESPONSE TO CHEVRON AND TO KENTUCKY COURTS SB 84...
Continue Reading
ITFA Is Alive and Well: New York Advisory Opinion Reaffirms Sales Tax Exemption for Internet Access Services
By Eric D. Carstens and Jonathan C. Hague on Oct 2, 2024
Posted In Constitutional Issues, Local Tax, Nationwide Importance, New York, Sales Tax
In its latest Advisory Opinion, TSB-A-24(4)S (June 26, 2024), the New York State Department of Taxation and Finance (the Department) reaffirmed the broad protections offered by the Internet Tax Freedom Act (ITFA) against state and local taxation of internet access. The Petitioner, a New York-based business, sought clarity on whether its subscription to a secure...
Continue Reading
Texas Comptroller Proposes Rule Changes Cementing Tax on 130% of Marketplace Sales
By Stephen P. Kranz, Mark Nebergall and Jonathan C. Hague on Sep 17, 2024
Posted In Audits, Nationwide Importance, Sales Tax, Tax Base, Texas, Transaction Taxes
In a controversial move, the Texas Comptroller is poised to amend Rule 3.330, Data Processing Services, effectively rewriting the rules to favor the contentious stance it has adopted in recent audits and litigation. This proposed amendment, which aims to cement the aggressive stance the Comptroller has taken in audits and litigation that a marketplace provider’s...
Continue Reading
California Legislator Considers Digital Advertising Tax
By Stephen P. Kranz, Michael J. Hilkin, Mark Nebergall and Jonathan C. Hague on Mar 29, 2024
Posted In Allocation/Apportionment, California, Constitutional Issues, Nationwide Importance, Sales Tax, Tax Base, Transaction Taxes
Senator Steven Glazer, chair of the California State Senate Revenue and Tax Committee, is treating data like the next gold rush and taking bold steps to mine this new vein of wealth with his proposed “Digital Data Extraction Tax Law.” While couched as a tax on “data extraction,” the base for the tax is digital...
Continue Reading
Following Maryland’s Lead? We Guess Everyone Wants to Go to Court. Icy Challenges to Nebraska’s Advertising Services Tax Act Start to Emerge
By Stephen P. Kranz, Mark Nebergall and Jonathan C. Hague on Jan 18, 2024
Posted In Constitutional Issues, Nationwide Importance, Nebraska, Sales Tax, Tax Base
Nebraska Governor Jim Pillen’s ambitious plan to provide $2 billion in property tax relief via an increase in the sales tax rate and an expansion of the sales tax base is stirring significant debate. Part of his proposal is embodied in the newly introduced Legislative Bills 1310 and 1354, known as the “Advertising Services Tax...
Continue Reading
Massachusetts Department of Revenue Releases Guidance on a De Minimis Exception for Use Tax on Rolling Stock
By Richard C. Call, Stephen P. Kranz and Jonathan C. Hague on Mar 28, 2023
Posted In Audits, Local Tax, Massachusetts, Nationwide Importance, Sales Tax
The Massachusetts Department of Revenue (DOR) recently released Directive 23-1, which outlines the conditions for a de minimis exception where the Commissioner will not require a taxpayer to pay the use tax for rolling stock used or stored within the state. This directive comes at a time when the DOR is auditing many companies that...
Continue Reading
Fatally Flawed? Illinois Municipal League’s Model Streaming Subscription Tax
By Stephen P. Kranz, Mark Nebergall, Catherine A. Battin and Jonathan C. Hague on Aug 24, 2022
Posted In Illinois, Local Tax, Nationwide Importance
The Illinois Municipal League (IML) represents the interests of 219 home rule municipalities in Illinois.[1] The IML recently released a revised draft model, “Municipal Streaming Tax Ordinance,” (the model) for use by the home rule municipalities in imposing an “amusement tax” on, inter alia, music and video streaming services and online gaming.[2] If the subscriber’s...
Continue Reading
