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.

The State of New York Maintains that End-of-lease Adjustments for Fleet Cars are Not Eligible for a Sales Tax Refund

A fleet management company that leases fleets of vehicles to businesses in New York was told by an administrative law judge at the New York Division of Tax Appeals that it could not claim sales tax credits for refunds of tax paid to vehicle lessees at the end of their leases following a rental adjustment that decreased the total rent paid under the lease.

Louisiana Sales and Use Tax Commission for Remote Sellers Publishes Rules for Voluntary Disclosures

The Louisiana administrative code has been amended to include rules and procedures for voluntary disclosure agreements for qualified remote sellers who wish to voluntarily remit unpaid sales taxes to the Louisiana Sales and Use Tax Commission for Remote Sellers.

Missouri Supreme Court Denies Carfax’s Use of Manufacturing Exemption For Their Computer Servers

The Supreme Court of Missouri has sided with the Department of Revenue and ruled that CarFax cannot claim manufacturing exemptions for their use of servers to generate vehicle information reports.

Idaho Issues New Exemption Certificate for Real Property Contractors

Idaho has issued a new sales tax exemption certificate for real property contractors.

Colorado Enacts Exemption for Essential Hygiene Products, Effective January 1, 2023

Effective January 1, 2023, Colorado has enacted legislation creating a state-level sales and use tax exemption on the sale, storage, use or consumption of incontinence products, diapers, and period products.

Alabama Denies Exemption Certificate For Contractor After Completion of Government Project

An electrical subcontractor working on a project for the University of Alabama was denied their request for a sales and use exemption certificate by the Alabama Tax Tribunal.

Amazon FBA Warehouses in Pennsylvania Doesn’t Establish Physical Presence

The Commonwealth Court of Pennsylvania sided with the Online Merchants Guild as they pushed back on the Department of Revenue’s charges for taxes owed.

Streamlined Sales Tax Member States Submit New Certificates of Compliance and Update Tax Administration and Taxability Matrices for 2022

All Streamlined Sales Tax Agreement member states have now submitted their 2022 updated certificates of compliance, tax administration practice matrices, and updated library of definitions.

Three Georgia Cities to Begin Local Tax Collection in October 2022

The Georgia cities of College Park, East Point, and Hapeville have elected to impose an optional 1% sales tax at the municipal level, following referendums in May 2022.

Drugs Sold for Clinical Trials are Free from Sales and Use Tax in Tennessee

In a letter ruling approved by David Gerragano the Commissioner of Tennessee department of Revenue on June 16th, 2022, it was determined that drugs sold in relation to a clinical trial are exempt from sales and use tax.

Wayfair Sues Colorado City and Department of Revenue Over Undue Burdens on Out of State Taxpayers

Wayfair LLC, the defendant in the landmark 2018 ruling that created the standards for economic nexus, has filed suit in Colorado to challenge the nexus standards of the state and its home rule cities, arguing that the state\’s tax regime violates the US constitution and the standards laid out in the 2018 case.

Minnesota Adds NFT Clarifications to Digital Product Sales Tax Fact Sheet

Minnesota has provided clarity to the taxability of non-fungible tokens (NFTs) due to an increase in use. NFTs entitle the purchase of goods and services, according to the recently updated fact sheet, when NFTs are used to purchase taxable products.

Florida Accepting Electronic Digital Signatures on Tax Forms

The Florida Department of Revenue (DOR) has issued a Tax Information Publication stating that the DOR will accept electronic digital signatures on tax forms, such as power of attorney forms and other documents that must be signed.

Tennessee allows a deduction of sales tax to compensate registered vendors and dealers

A summary of Senate Bill 500 by the Tennessee Department of Revenue explains that dealers are allowed a deduction equal to 2 percent of the state sales tax due, not to exceed $25 per return.

Penalties still in effect in Virginia even after the elimination of Accelerated Sales Tax

While the Accelerated Sales Tax was eliminated as of June 30, 2021, by amendments to the 2021 Appropriation Act, the Virginia Department of Taxation advised that “penalties and interest for all prior years’ Accelerated Sales Tax payments remain due and are collectible during a summary issued during a July 2022 Session of the General Assembly.

West Virginia issues new rule addressing vendor absorption of sales tax

Retailers in West Virginia will now be permitted to advertise or claim that sales and use tax can be absorbed by the retailer under specific conditions following a new rule issued by the state’s Tax Department.

Arkansas sustains sales tax assessment against company ruled to have sufficient nexus within the state

A June 2022 ruling by an Arkansas Administrative Law Judge sustained a tax assessment by the Department of Finance and Administration against a company deemed to have “sufficient nexus” within the state.

Texas rules payment card management program is a nontaxable payment processing service

A private letter ruling by the Texas Comptroller of Public Accounts found in favor of a taxpayer, defining its payment card management (PCM) program as a nontaxable payment processing service, not a taxable data processing service.

Louisiana establishes multi-parish audit program

As of July 1, 2022, the Louisiana State Legislature has enacted legislation calling for the state’s Uniform Local Sales Tax Board to implement a multi-parish audit program.

Tennessee rules marketplace facilitator fees are not subject to sales tax

The Tennessee Department of Revenue confirmed that marketplace facilitator fees for connecting buyers and sellers and processing payments are nontaxable in a private letter ruling approved in April 2022.

Michigan Court of Appeals: Recycling machines do not qualify for Industrial Processing Exemption

A Michigan Court of Appeals on July 21, 2022 upheld a ruling that the seller of recycling machines did not qualify for the state’s industrial processing exemption.

Vermont expands sales and use tax manufacturing exemption to include machinery and equipment in integrated production operation

Machinery used in or consumed as an integral or essential part of an integrated production operation is not subject to sales and use tax in the State of Vermont as of July 2022 following an amendment expanding the Manufacturing Tax Exemption.

Washington issues interim statement regarding the taxability of non-fungible tokens

Purchases of non-fungible tokens, or NFTs, are taxable in most cases and sellers of NFTs are subject to Washington business and occupation (B&O) tax on gross proceeds, according to an interim statement provided by the Washington Department of Revenue in July.

Online learning courses ruled nontaxable in Texas

Subscriptions to online learning services are not taxable in the state of Texas, according to a July ruling in a private letter published by the state comptroller, but planning services purchased by teachers are subject to tax.