News & Tips

Here you can read up on significant developments in the world of sales and use tax. Find the latest legislative updates and helpful tips to keep you in compliance across all 50 states. You can filter news items by topic and/or a jurisdiction of interest.

California Introduces Reforms to Sales Tax Penalties

California Senate Bill 1528 introduced several administrative changes to sales tax and fee laws managed by the California Department of Tax and Fee Administration (CDTFA).

Alaska Repeals Sales Tax Transaction Threshold

The Alaska Remote Seller Sales Tax Commission has announced that transaction count will no longer be a factor in determining economic nexus within the state effective January 1, 2025.

Nebraska Launches New Good Life Districts

Nebraska recently made changes related to their local tax rate structure to create Good Life Districts with alternate state and local sales tax rates.

Massachusetts Announces Dates and Details of Tax Amnesty Program

Massachusetts will hold a tax amnesty program from November 1, 2024, to December 30, 2024, during which time it will waive most penalties for eligible taxpayers who file outstanding returns and pay tax and interest owed.

Louisiana Grants Sales Tax Filing and Payment Extension for Hurricane Francine Victims

The Louisiana Department of Revenue (DOR) has granted an automatic filing and/or payment extension for taxpayers impacted by Hurricane Francine.

Iowa Rules Genetic Testing Services Not Subject to Sales Tax

In a recent ruling, the Iowa Department of Revenue (DOR) addressed the taxability of genetic testing services provided by CRI Genetics, LLC.

Testing Equipment Involved in Manufacturing Process Exempt from Sales Tax in Virginia

A taxpayer in Virginia was entitled to a refund for paid sales and use tax on testing equipment.

Michigan Deems NFTs Taxable in Certain Conditions

The Michigan Department of Treasury has deemed non-fungible tokens (NFTs) as taxable if they represent an ownership interest in tangible personal property. However, NFTs that represent digital goods are not taxable.

Card Interchange Fees to be Prohibited in Illinois

A new prohibition on interchange fees paid by merchants was included in Illinois HB 4951 and will go into effect in Illinois on July 1, 2025. The law forbids card networks from receiving or charging any fees on the tax…

Illinois Updates Sales Tax Requirement for Leases

Effective January 1, 2025, Illinois will begin taxing lease transactions, which will bring Illinois more in line with most other states’ sales tax treatment of leases. Prior to January 1, 2025, Illinois opted to tax personal property at the time…

Illinois Caps Vendor Discount

Effective January 1, 2025, a provision of Illinois HB4951 goes into effect which caps the sales tax vendor discount to $1,000 per month. The original idea behind offering this discount was as a form of compensation to businesses meant to…

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.

Pennsylvania Rules Cloud Computing and Support Services for Canned Computer Software as Taxable

The Board of Finance & Revenue of Pennsylvania recently reviewed petitions filed by One Market Data LLC, challenging the revocation of its sales tax license and the assessment of tax, penalties, and interest for the period between January 2020 and December 2022.

Illinois Enacts New Requirements for Direct Pay Permit Holders

Illinois has enacted sales and use tax legislation that creates new requirements for direct pay permit holders.

Massachusetts Authorizes Tax Amnesty Program for 2025

Massachusetts’s recently enacted budget bill authorizes the Department of Revenue to establish a 60-day tax amnesty program in fiscal year 2025 to end no later than June 30, 2025.

Missouri Enacts Sales Tax Exemption for Utility Infrastructure and Electricity Generation

Missouri has enacted Senate Bill 872, bringing significant changes to the state\’s sales tax regulations for the utility sector.

Missouri Unplugs Local Franchise Fees for Streaming

Missouri Governor Michael L. Parson signed into law S.B. 872 and H.B. 2057, exempting streaming and satellite TV companies from local franchise fees.

Tennessee Adopts New Sourcing Provisions

House Bill 323 (H.B. 323), the Tennessee Works Tax Act, enacted on May 11, 2023, introduced significant changes to Tennessee’s sales and use tax laws.

Pennsylvania Court Rules on Sales Tax for Perrier Water

In a recent decision by the Commonwealth Court of Pennsylvania, taxpayer Jennifer Montgomery\’s petition for a refund of sales tax paid on Perrier non-flavored mineral water was denied.

Tennessee Issues Letter Ruling on Repair Services for Traffic Management Equipment

The Tennessee Department of Revenue (DOR) has issued a letter ruling to a company regarding the taxability of repair services performed in Tennessee on traffic management equipment which is shipped to out-of-state customers.

Colorado Rules That DNA Testing with Tangible Personal Property is Nontaxable Service

The Colorado Department of Revenue (DOR) issued a private letter ruling regarding a company’s sales of ancestral and health reports and the saliva kits used to collect customers’ DNA for generating the reports.

Washington Court of Appeals Upholds Renton’s Utility Tax on TracFone

In a recent ruling, the Washington Court of Appeals affirmed that TracFone Wireless, Inc. is liable for municipal utility taxes under the City of Renton’s ordinance.

North Carolina Repeals Transaction Count from Economic Nexus Threshold

Effective July 1, 2024, North Carolina has enacted legislation that repeals the 200-transaction count from its economic nexus threshold for remote sellers.

Ohio Expands 2024 Sales Tax Holiday

Ohio\’s sales tax holiday, running from July 30, 2024, through August 8, 2024, has been expanded under Ohio House Bill 33.