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 Court Rules Medical Items Did Not Qualify for Prosthetic Device Exemption

Michigan Court of Appeals: medical supplies like bandages and incontinence products aren\’t prosthetic devices under MCL 205.54a(1)(k) (RMS v. Treasury).

Washington Clarifies Tax treatment of SaaS Implementation Services and Travel Costs

Washington ruled SaaS implementation services and travel reimbursements are taxable when exclusively connected to a taxable SaaS product.

North Carolina Enacts Tax on Peer-to-Peer Vehicle Rentals

North Carolina will tax peer-to-peer vehicle rentals at 3%–8% starting October 1, 2026. Providers must register with the DOR before that date.

Georgia Tax Tribunal Orders Uber To Charge Tax On Safe Rider Fee, Pay Uncollected Taxes

The Georgia Tax Tribunal issued a pair of orders in the case of Uber Technologies Inc. v. Crittenden, determining that Uber underpaid its sales tax liability by several million dollars by not including its Safe Rider Fee in its taxable basis.

Maryland Enacts New Tax on Digital Advertising

The Maryland legislature overrode Governor Larry Hogan’s veto of a new tax on digital advertising (H.B. 732) on February 12, 2021, making Maryland the first state in the country to adopt a tax on digital advertising.

Rhode Island Launches Tax Amnesty Program

Rhode Island created a temporary tax amnesty program as part of the FY 2027 budget legislation.

Washington Appeals Court Rejects Remote Sourcing for Title and Escrow Services

The Washington Court of Appeals ruled title and escrow services are sourced to the property location, even for remote work — upholding an $8.3M assessment.

Missouri Establishes Rounding Procedures for Cash Transactions

Missouri HB 2819 lets sellers round cash transaction totals to the nearest nickel — sales tax is calculated before rounding. Effective August 28, 2026.

Washington Provides Guidance Regarding Taxability of Digital Automated Services

Washington DOR clarifies DAS taxability under ESSB 5814 — covering professional services, data processing, and digital features added to existing products.

Illinois Updates PIO-125: Nexus Now Covers Servicepersons, Plus New Threshold and Sourcing Guidance

Illinois PIO-125 (2026) expands nexus guidance to servicepersons, clarifies the $100K threshold for ROT and SOT, and updates sourcing rules.

Cloud-Based Educational Services Exempt from Indiana Sales Tax

Indiana ruled cloud-based educational and SaaS training services aren\’t taxable — no permanent right of use (Revenue Ruling 2026-04-RST).

Colorado Appeals Court Rules Netflix Subscriptions Are Subject To Sales Tax

A Colorado appeals court has ruled that Netflix subscriptions are subject to sales tax. Learn how this decision impacts digital service providers and tax compliance nationwide.

NFL’s Cardinals are Liable for Transaction Privilege Tax on Ticket Fees

Arizona Court of Appeals rules Cardinals ticket Facility Use Fees are taxable under TPT — upholding over $1.5M in assessments from the state and Glendale.

Maryland Carves Out a Sales Tax Exemption for Intercompany Digital Transactions

Maryland HB 898 exempts intercompany data, IT, and digital transactions from the tech tax when buyer and seller are affiliated group members.

Iowa Expands Sales Tax Exemption for Telecommunications and Broadband Infrastructure

Iowa HF 960 lets broadband providers claim the sales tax exemption on central office and transmission equipment, effective July 1, 2026.

New Guidance Clarifies Tax-Exempt Purchases for Public Construction Projects

Louisiana clarifies which contractor purchases qualify for the public construction sales tax exemption under RIB 26-010. See what\’s included and excluded.

Tennessee Authorizes Local Option to Reduce or Eliminate Sales Tax on Food

Tennessee HB 2186 gives metropolitan counties the option to reduce or eliminate local sales tax on food. Effective October 1, 2026.

Florida Enacts Changes to Sales Tax Holidays and Exemptions

Florida\’s HB 7031E brings 2026 sales tax changes: a permanent back-to-school holiday (July 20–Aug 20), home hardening refunds, and new exemptions.

Pallet Rentals Not Eligible for Resale Exemption in Arkansas

The Arkansas Supreme Court held pallet rentals are taxable — they aren\’t an integral part of the product sold (Tyson Chicken v. DFA).

California Expands Sales Tax to Software and SaaS Under SB 122

With the passage of SB 122, California’s definition of “tangible personal property” (TPP) has expanded to include certain digital products, specifically prewritten (canned) computer software, regardless of how it is delivered. Historically, California limited sales tax to items that could…

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…

Washington Approves Cash Rounding for In-Person Transactions

Washington\’s new cash rounding law (HB 2334) lets retailers round to the nearest nickel in person — but sales tax stays calculated on the original price.

South Dakota Department of Revenue Moving to Electronic Account Notifications

South Dakota’s Department of Revenue is shifting toward electronic account notifications, reinforcing its broader move to online tax account management through EPath and other digital services. Learn what the change means for businesses, filing workflows, and tax account communication.

Colorado Ends Downloaded Software Tax Exemption Under HB 26-1223

Colorado HB 26-1223 makes downloaded software taxable starting January 1, 2027, and likely brings SaaS into the tax base. See the new exemption rules.