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.

Hotel Guest Consumables Subject to Texas Sales Tax

A Texas hotel was not entitled to a sale for resale exemption on guest extras provided to customers.

U.S. Federal Government Exempt from Georgia Hotel-Motel Fee

Purchases of accommodations by the federal government are not subject to the Georgia State Hotel-Motel Fee.

Iowa Department of Revenue Explains Sales Tax Responsibilities of Food Manufacturer Remote Seller

The Iowa Department of Revenue issued a ruling to explain the sales tax implications of a remote seller that sells baked goods and other products into the state.

Online Educational Services Not Subject to Indiana Sales Tax

An out-of-state taxpayer’s online educational services were not subject to tax because they were considered remotely accessed software.

In-State Visits Created Nexus for Remote Seller in Washington

A remote seller’s in-state visits in Washington created substantial nexus for sales and use tax purposes in the state.

Indiana Issues Directive on Heavy Equipment Rental Excise Tax

Indiana has a heavy equipment rental excise tax imposed at a rate of 2.25% and effective January 1, 2019.

Utah to Increase State Sales Tax Rate

Utah will increase its state sales tax rate from 4.7 to 4.85% on April 1, 2019.

Wisconsin Enacts Legislation to Codify Emergency Economic Nexus Rule

Wisconsin has enacted legislation to codify emergency economic nexus rules put into place after the South Dakota v. Wayfair decision.

Motor Vehicle Maintenance Contracts Sold to Nonresidents Subject to Tax in Virginia

A car vehicle dealer’s sale of extended warranties, service and maintenance contracts and agreements for vehicles purchased in Virginia but licensed and registered in another state are subject to Virginia sales tax.

Iowa Expands Tax Base to Include Additional Specified Services

Iowa has enacted legislation that expands the state’s tax base to include additional specified services, effective January 1, 2019.

Arizona Unveils TPT Filing and Payment Program

The Arizona Department of Revenue has rolled out its program for electronic filing and payment of the state’s Transaction Privilege Tax (TPT).

Pennsylvania Enacts New Economic and Marketplace Nexus Provisions

Pennsylvania has issued a bulletin clarifying the state’s economic and marketplace nexus provisions and creating a new economic nexus threshold, effective July 1, 2019.

Arkansas Issues Legal Opinion Clarifying Manufacturing Machinery and Equipment Exemption

Arkansas has issued a legal opinion clarifying the state’s exemption for manufacturing machinery and equipment.

New York Releases Guidance on Economic Nexus Threshold and Requirements for Remote Sellers

Businesses without physical presence in New York are required to collect and remit sales tax if they exceed the state’s economic threshold, effective immediately.

Idaho Amends Administrative Rules to Reflect Click-Through Nexus Legislation

The Idaho State Tax Commission has amended state sales and use tax administrative rules to reflect click-through nexus provisions the state passed in 2018.

Sales of Digital Goods Taxable in District of Columbia

Effective January 1, 2019, sales of digital goods into the District of Columbia are subject to sales and use tax.

Pennsylvania Releases Guidance on Hotel Occupancy Tax for Booking Agents

Effective January 22, 2019, a booking agent that facilitates the short-term booking of an occupancy on behalf of a hotel operator located in Pennsylvania must now collect and remit hotel occupancy tax on the rent collected.

Arkansas Decreases General Sales and Use Tax Rate for Food

Arkansas has decreased its general sales and use tax rate on food to 0.125%, effective January 1, 2019.

West Virginia Announces Remote Seller Registration Webpage

The West Virginia State Tax Department has created an online registration webpage for remote sellers who meet one of the state’s economic nexus thresholds.

Texas Amends Rules for Remote Sellers to Establish Economic Nexus

Starting October 1, 2019, remote sellers with sales exceeding $500,000 in total Texas revenue must register to collect and remit tax.

Virginia Pre-Files Economic and Marketplace Nexus Legislation

Virginia has pre-filed legislation for the 2019 legislative session that would impose a sales and use tax collection obligation on remote sellers and marketplace facilitators that exceed an economic threshold.

Prepaid MTS Sellers to Stop Collecting State MTS Surcharge, Begin Collecting 911 Surcharge in California

Prepaid MTS sellers in California must stop charging state-level portion of MTS surcharge, begin collecting 911 surcharge.

Nebraska Provides Updated Charge Card Information for Exempt Federal Employee Purchases

Nebraska has provided an information guide regarding charge card purchases by federal government employees.

Tablet Rental Charges for Restaurant Subject to South Carolina Sales Tax

A restaurant operator’s payment of charges for the use of a third-party vendor’s table top ordering and bill payment tablets were subject to South Carolina sales and use tax.