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.

Michigan Holds that Recycling Machines Qualify for Industrial Processing Exemption

Michigan held that sales of container recycling machines qualify for the state’s sales and use tax exemption on machinery used in industrial processing.

Tennessee Issues Ruling on Tax Treatment of Household Appliances

The Tennessee DOR has issued a ruling discussing the application of sales and use tax to the installation of household appliances.

Digital Reassignment of Inventory Creates Substantial Nexus in Washington

A remote seller who makes sales through a marketplace facilitator established physical presence nexus in Washington by having inventory digitally reassigned there.

Arizona Adopts Rule Amending Treatment of Gratuities for TPT

Arizona has amended the treatment of gratuities for TPT purposes.

South Carolina Announces New Consolidated Sales Tax Return Filing Option

The South Carolina DOR has announced a new Consolidated Sales Tax Return filing option for businesses that have multiple locations.

Taxpayer Required to Provide Exemption Documentation Upon Audit in Virginia

A franchisee of restaurants with several Virginia locations failed to provide sufficient documentation to verify exempt sales under audit.

IT Service Agreement Taxable as Service Contract in North Carolina

An IT provider’s service agreements were subject to North Carolina sales and use tax since the agreements met the definition of a taxable service contract.

Kansas Provides Guidance on Taxation of Digital Currency

The Kansas Department of Revenue has issued guidance regarding the sales tax treatment of transactions related to digital currency.

Cloth Face Masks are Exempt from Pennsylvania Sales Tax

The Pennsylvania Department of Revenue has indicated that cloth face masks are now exempt from Pennsylvania sales tax.

Alabama Tax Licenses Must Be Renewed Annually

Effective November 1, 2020, taxpayers are required to renew their Alabama tax licenses on an annual basis.

Membership Fees Not Taxable as Lump-Sum Admission Fees in Alabama

A taxpayer’s charges for annual and family memberships constituted exempt membership dues and not taxable lump-sum admissions fees in Alabama.

Purchases Made Prior to Eligibility Date Did Not Qualify for Oklahoma Sales Tax Exemption

Purchases of furniture were not exempt from Oklahoma sales and use tax since they were made prior to the effective date of the taxpayer’s exemption eligibility

West Virginia Provides Updated Guidance for Voluntary Disclosure Agreements

West Virginia has provided updated guidance regarding the state’s voluntary disclosure agreement process.

Vermont to Require Marketplace Facilitators to Collect Universal Service Charge

Effective July 1, 2021, Vermont will require marketplace facilitators to collect the Universal Service Charge on retail sales of prepaid wireless telecommunications services

Arizona to Discontinue Mailing of Paper TPT Returns

Effective February 1, 2021, the Arizona DOR will discontinue mailing of paper Transaction Privilege Tax returns to taxpayers.

Tennessee Issues Guidance on Taxability of Pre-Recorded Videos of Online Courses

The Tennessee DOR has added three new FAQs to its website discussing the taxability of pre-recorded videos of online courses.

Backup Service Exempt as Nontaxable Computer Software and Related Services in Colorado

Colorado has issued a private letter ruling stating that sales of a backup service provided by an information technology provider are not subject to tax.

Retailer Required to Report and Collect Use Tax on Online Sales Based upon Customer Location in Missouri

Missouri has issued a letter ruling regarding sales made by a retailer that has retail locations in Missouri and makes online sales as well.

Arizona TPT Electronic Filing Threshold Lowers on January 1, 2021

Effective January 1, 2021, Arizona’s threshold for Transaction Privilege Tax (TPT) electronic filing and paying lowers to $500.

Order Management Services Taxable as Data Processing in Texas

A taxpayer’s provision of order management services was properly subject to Texas sales and use tax since the services qualified as taxable data processing services

Ohio Provides Guidance on Sourcing for Marketplace Facilitators

Ohio has revised an information release to provide guidance on sourcing sales for marketplace facilitators.

Georgia Issues Guidance Regarding Exempt Nonprofit Organizations

The Georgia Department of Revenue has issued guidance regarding exempt nonprofit organizations.

California Disallows Resale Exemption for Contractor Who Used Purchased Materials

A construction contractor was subject to California use tax on materials that it purchased with resale certificates since the contractor failed to establish that it was engaged in the business of selling materials.

Electronic Gaming Devices Properly Taxed as Games of Entertainment in Maryland

Maryland held that electronic gaming devices were properly characterized as games of entertainment for purposes of being assessed Admissions and Amusement (A&A) Taxes.