Sales Tax FAQs

Explore commonly asked questions about sales and use tax. A great starting place to learn about fundamental sales tax concepts and general applications to business.

New to Selling Online? The Top 4 Considerations for Sales Tax

Picture this common business scenario in the Internet age: Your company has historically only sold its products from a physical store but decides to grow its business by selling online on its own website. Adding a new online sales channel…

Sales Tax Registration – What Is It and Why Do You Need To Do It?

Post-Wayfair, it has never been more important to understand your sales tax registration obligations. If you’re making sales, chances are good that you will need to register to collect and remit sales tax in multiple states.

3 Ways that SD v. Wayfair Will Impact Retailers (And What To Do About It)

In a post-Wayfair world, retailers need to be aware of the impact this court decision can have on their operations. Here are three ways that Wayfair will impact retailers and what to do about it.

Case Study: How Local Taxes Can Impact Small Businesses

There is a crucially important topic when it comes to sales tax compliance that most don’t properly consider: local sales and use tax.

Sales Tax Holiday Season is Here

With sales tax holiday season right around the corner, now is a good time to look at how sales tax holidays work and examine the different types of holidays that states offer.

South Dakota v. Wayfair is Decided: What Does It Mean for You?

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case. For those of us in the sales tax field, this decision is as big as it gets.

Cook County Sweetened Beverage Tax – What’s so Hard about It???

This blog post details the history of Cook County’s sweetened beverage tax, from its enactment to its subsequent repeal.

Soda Taxes: A New Trend Across the States

Seattle is the latest in a string of major cities that have proposed and enacted a soda tax since November 2016.

Holiday Shopping Season is Here! Here’s What Retailers Need to Know

With the influx of holiday shoppers flooding stores, it’s important that retailers understand how to handle sales tax for the issues that arise at this time of year.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

California Enacts Exemptions for Diapers and Menstrual Hygiene Products

Effective January 1, 2020, California has enacted a sales and use tax exemption for diapers and menstrual hygiene products.

District of Columbia Increases Tax Rate on Soft Drinks

Effective October 1, 2019, the District of Columbia is increasing the sales and use tax rate on sales of soft drinks to 8%.

Wisconsin Raises Occasional Sale Exemption Threshold for Antique and Other Sellers

Wisconsin raised the threshold for its Occasional Sale Exemption to $2,000.

CBD Products Subject to Tax in Louisiana, Effective January 1, 2020

Effective January 1, 2020, sales of industrial hemp-derived CBD (cannabidiol) products are subject to a 3% Louisiana excise tax.

Idaho Provides Exemption for Vehicle Accessory Installation Charges

Idaho passed legislation that creates a sales tax exemption for labor costs on vehicle accessory installation.

Cell Phones Subject to Tax on Full Purchase Price in Michigan

A retailer was subject to Michigan use tax on the full purchase price of phones that it purchased from Verizon and subsequently gave away for free with service plans.

Motor Vehicle Maintenance Contracts Sold to Nonresidents Subject to Tax in Virginia

A car vehicle dealer’s sale of extended warranties, service and maintenance contracts and agreements for vehicles purchased in Virginia but licensed and registered in another state are subject to Virginia sales tax.

Arkansas Decreases General Sales and Use Tax Rate for Food

Arkansas has decreased its general sales and use tax rate on food to 0.125%, effective January 1, 2019.

Nebraska Provides Updated Charge Card Information for Exempt Federal Employee Purchases

Nebraska has provided an information guide regarding charge card purchases by federal government employees.

Tennessee Explains Application of Sales Tax to Restaurant Gift Cards

The Tennessee Department of Revenue Issued a letter ruling to explain the how sales tax applies to a taxpayer’s purchase and distribution of gift cards.

Washington Issues Guidance on the Taxability of Unredeemed Gift Cards

Washington has addressed options for businesses to report or recognize income from unredeemed and abandoned gift cards.

Sales of Card Games to Crowdfunding Donors Taxable in Arkansas

A company that used a crowdfunding campaign to raise funds to produce a card game was liable for Arkansas sales tax on its sales of the card game to its crowdfunding donors.

Retailers May Recover North Carolina Tax Paid on Certain Purchases Subsequently Resold Without Being Used

Effective June 12, 2018, retailers may recover North Carolina sales and use tax paid on property or services if the retailer subsequently resells the property or services at retail without having used them.