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.

Texas Issues FAQs for Remote Sellers and Marketplace Providers and Sellers

The Texas Comptroller has posted FAQs on its website regarding post-Wayfair obligations for remote sellers, marketplace sellers, and marketplace providers.

Streamlined Sales Tax Agreement is Amended to Revise Amnesty Qualifications

The Streamlined Sales Tax Governing Board has made amendments to the SST Agreement to revise its amnesty-related provisions.

New York Announces COVID-19 Tax Relief for Restaurants and Food Service Establishments

New York has issued a notice announcing sales and use tax relief for restaurants and food service establishments due to COVID-19.

Portable Toilet Rentals Subject to Tax, Not Exempt as a Service in Missouri

Missouri held that the provision of portable toilets and related services were taxable as the rental of tangible personal property, not exempt as waste removal services.

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.

Illinois Makes Changes to Taxation of Wine Sales by Remote Sellers

Illinois has enacted changes to the taxation of wine sales to Illinois purchasers by certain winery shipper’s license holders.

Remote Retailers to Collect Illinois ROT at Destination Rate, Effective January 1, 2021

A significant change for remote out of state sellers and marketplace facilitators making sales into Illinois is occurring as of January 1, 2021, regarding the collection of sales and use tax, sourcing, and tax rates, and this will impact your…

Colorado Amends Administrative Rule to Clarify Taxation of Digital Goods

Colorado has clarified the state’s treatment of digital goods as generally constituting tangible personal property that is subject to sales tax.

Wisconsin Issues Guidance on Taxability of Educational Products, Goods and Services

The Wisconsin Department of Revenue has issued guidance on the sales tax treatment of educational items, including online learning and digital books and videos.

Massachusetts Enacts Provision for Accelerated Sales Tax Remittance

Massachusetts Gov. Charlie Baker signed the Fiscal Year 2021 budget into law, which contains a provision for accelerated sales tax remittance.

Tennessee Issues Guidance on Applicability of Marketplace Nexus Legislation to Other Taxes

Tennessee has issued guidance on whether the state’s marketplace nexus legislation applies to other taxes.

California Offers COVID-19 Relief for Small Business Owners

California is providing immediate tax relief for small business owners due to the impact of COVID-19.

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.

Colorado Enacts COVID-19 Tax Relief for Restaurants, Bars and Mobile Food Vendors

Colorado has enacted legislation that provides a temporary deduction from state net taxable sales for qualifying bars, restaurants and mobile food service vendors.

Chicago Increases Personal Property Lease Transaction Tax, Effective January 1, 2021

Effective January 1, 2021, Chicago’s Personal Property Lease Transaction Tax increases from 7.25% to 9% on charges for cloud services

Los Angeles Offers Tax Amnesty Program on Numerous Taxes

The Los Angeles Office of Finance is administering a Tax Penalty Amnesty Program from October 1, 2020 to December 17, 2020.

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.

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.