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.

Coronavirus Tax Filing Relief & Resources

List of resources to help tax professionals navigate the impact of the coronavirus. Many states are offering tax filing relief to taxpayers by extending deadlines and in some cases, penalty and interest relief.

North Carolina Removes Economic Nexus Threshold for Marketplace Nexus Provisions

North Carolina enacted legislation that removes the nexus economic nexus threshold for purposes of the state’s marketplace nexus provisions.

Louisiana Increases Vendor’s Compensation Rate

Effective for sales tax periods beginning on or after August 1, 2020, Louisiana has increased the rate for the vendor’s compensation state sales tax deduction.

Massachusetts Provides Guidance Regarding Electronic Signatures

The Massachusetts Department of Revenue (DOR) has issued guidance regarding the DOR’s acceptance of electronic signatures on administrative forms.

PPE Sold to or Purchased by State of California is Exempt

Personal protective equipment (PPE) is temporarily exempt from sales and use tax when sold to or purchased by the State of California.

Arizona Approves Abatement of Penalties on TPT due to COVID-19

Arizona has issued notice that the impact of the COVID-19 pandemic constitutes a reasonable basis for business owners and operators\’ inability to timely file or pay TPT.

Retailer’s Sale and Installation of Appliances Not Exempt in Illinois

The Appellate Court of Illinois affirmed a lower court’s finding that a retailer’s sales of appliances were not exempt as installations into real property from ROT despite the retailer’s installation of the appliances.

Minnesota Updates Guidance on Exemptions for Utilities used in Production

Minnesota has updated a sales tax fact sheet that provides guidance regarding exemptions for utilities used in production to include information on utility refunds for landlords.

Safety Manager Services on Construction Sites Taxable in New York

Providing site safety managers, fire safety managers, and emergency action watchmen for work on construction sites is subject to New York sales and use tax.

Programming and Trip Charges Subject to Tax in Virginia

A taxpayer that installs custom automated home theaters, speakers, lighting, and security systems was properly assessed sales tax on programming and trip charges.

California Disallows Taxpayer’s Claimed Credit for Overpayment Made in Previous Period

A taxpayer was properly disallowed self-help credits that it claimed on California tax returns for amounts overpaid in the previous quarter.

Alaska Remote Seller Sales Tax Commission Approves Remote Seller Sales Tax Code

The Alaska Remote Seller Sales Tax Commission passed its Remote Seller Sales Tax Code that would apply in local municipalities that adopt it.

COVID-19 Charges Subject to Tax in South Carolina

South Carolina has issued guidance stating that any COVID-19 surcharge or fee assessed on a taxable sale is subject to South Carolina sales and use tax.

Medical Instruments Shipped with Tangible Personal Property Subject to Use Tax in Michigan

Michigan held that an out-of-state manufacturer of orthopedic implants was subject to use tax on medical instruments that it provides in conjunction with sales of the implants.

Taxpayer Not Entitled to Relief Based on Advice from Previous California Audit

A taxpayer’s protest against an assessment of California sales and use tax was denied since the taxpayer could not establish that it was entitled to relief based on written advice provided in a prior audit.

New Mexico Extending Modifications to its Enforcement Efforts Due to COVID-19 Through August 31

New Mexico has announced that it will extend some modifications to its collection and enforcement efforts due to COVID-19 through August 31, 2020.

Virginia Denies Request for Reconsideration of Tax Determination on Lease/Purchase Transaction

A taxpayer’s request for reconsideration of a Virginia tax determination was denied since the taxpayer failed to prove that the state erroneously assessed tax on equipment purchased under a lease/purchase agreement.

Nevada Enacts Legislation with Tax Amnesty Provisions

Nevada has enacted legislation that requires the DOT to establish a tax amnesty program for a period of not more than 90 calendar days ending no later than June 30, 2021.

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.

Louisiana Enacts Tax on Fantasy Sports Revenues

Effective July 13, 2020, Louisiana has enacted a 8% tax on the net revenues of fantasy sports contests offered to consumers in Louisiana.

Instructor-Led Live Online Courses Not Taxable in Tennessee

Instructor-led live online courses provided by an out-of-state vendor were not taxable in Tennessee.

Iowa Enacts Change to Persons Eligible for Manufacturing Exemption

Effective August 19, 2020, Iowa has enacted legislation that narrows the limitation on persons eligible for the state’s manufacturing sales tax exemption.

New Jersey Will Allow Digital Signatures on Some Filings Due to COVID-19

As part of its COVID-19 response, New Jersey will accept scanned images of signatures and digital signatures on documents related to the determination or collection of tax.

Tennessee Issues Guidance on One-Time Sales Tax Holidays for 2020

Tennessee has issued guidance on one-time sales tax holidays for 2020.