A Washington Court of Appeals decision clarifies that legal-service receipts for B&O tax apportionment must be sourced to where the client receives the benefit of the work, not simply the billing address. The ruling has important implications for law firms, multistate service providers, and audit risk.
Colorado Releases Letter Ruling Addressing Third-Party Shipping
Colorado’s Department of Revenue ruled that if the buyer arranges third-party shipping from the seller’s location, the sale is sourced to the buyer’s known address—not the seller’s—impacting sales tax collection.
Illinois Issues Guide on Determining Physical Presence for Sales and Use Tax
In January 2025, Illinois issued a sales and use tax guide to make it easier for out-of-state retailers and marketplace facilitators to understand their tax obligations under the state’s laws.
Illinois Updates Destination Based Sourcing Rules
Effective January 1, 2025, a provision of Illinois S.B. 3362 goes into effect which makes certain Illinois retailers responsible for destination-based sourcing for sales tax purposes.