Mark Nebergall
Subscribe to Mark Nebergall's PostsMark Nebergall advises clients on all aspects of tax policy with respect to software transactions at state, federal and international levels. He also works with McDermott’s tax controversy team handling tax litigation where he brings his former experience as a litigator for the US Department of Justice, Tax Division. Mark combines tax policy and tax litigation skills to help solve client tax problems holistically. Read Mark Nebergall's full bio.
Maryland sales tax multiple points of use exemptions: Is the juice worth the squeeze?
By Eric D. Carstens, Stephen P. Kranz and Mark Nebergall on Jun 27, 2025
Posted In Allocation/Apportionment, Maryland, Nationwide Importance, Sales Tax, Tax Base
In the waning days of its 2025 session, the Maryland Legislature passed the Budget Reconciliation and Financing Act, and Governor Wes Moore signed it into law.[1] This bill expands the sales tax base to include sales of various data and information technology and cloud computing services.[2] The sales tax rate on these new categories of...
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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...
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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,...
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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...
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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...
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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...
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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...
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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...
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Action Required: Maryland Denies All Ad Tax Refund Claims
By Stephen P. Kranz, Eric D. Carstens and Mark Nebergall on Oct 27, 2023
Posted In Maryland, Nationwide Importance, Procedure
The Maryland Comptroller appears to have denied all refund claims for the 2022 digital advertising gross revenues (DAGR) tax! The denial notices were seemingly dated on or around October 11, 2023, and were sent via certified mail two weeks ago. The denial notices require immediate action by taxpayers. Read more here.
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Texas Taxing 130% of Marketplace Sales
By Stephen P. Kranz, Mark Nebergall and Eric D. Carstens on Oct 3, 2023
Posted In Audits, Nationwide Importance, Sales Tax, Texas, Transaction Taxes
Proving that everything is bigger in Texas, the state’s Comptroller is now assessing marketplace providers on 130% of their sales. It seems a sales tax on 100% was not big enough for tax officials in the Lone Star State. The additional 30% is a tax on the portion of the product sales price kept by...
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