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.

California to Enforce Remote Seller Tax Collection Requirements

California will require out-of-state retailers that exceed an economic threshold to collect use tax on sales into California, effective April 1, 2019.

California Issues Guidance Regarding Taxability of Sales to U.S. Government

The California Department of Tax and Fee Administration has issued a publication discussing the treatment of sales to the U.S. Government for California sales and use tax purposes.

Royalties Paid for Intellectual Property Exempt in Pennsylvania

Royalties paid for intellectual property used in operating video game machines in a casino resort were exempt from Pennsylvania sales and use tax.

Michigan Announces New Form for Customer Refund Requests

Effective January 1, 2019, customers seeking sales tax refunds from the Michigan Department of Treasury must use a new form.

Cincinnati Reds Win Tax Case: Promotional Items Qualify for Ohio Resale Exemption

The Ohio Supreme Court ruled that promotional items given to fans at Cincinnati Reds baseball games qualify for Ohio’s sale for resale exemption.

Tennessee Explains Application of Sales Tax to Restaurant Gift Cards

The Tennessee Department of Revenue Issued a letter ruling to explain the how sales tax applies to a taxpayer’s purchase and distribution of gift cards.

Glucose Testing Meters, Test Strips, Lancing Devices and Lancets Exempt in Vermont

A retailer’s sale of glucose test strips, lancing devices, and lancets are exempt from Vermont sales and use tax since they were used in medical diagnosis or treatment.

Ohio Now Accepts Cryptocurrency as Tax Payment

Ohio announced that the state will now accept tax payments via cryptocurrency with the launch of OhioCrypto.com.

Nevada Voters Approve Exemptions for Feminine Hygiene Products and Medical Equipment

In the November 6, 2018 midterm elections, Nevada citizens voted to approve two new sales tax exemptions.

New Mexico Announces Tax Amnesty Program

On November 8, 2018, the New Mexico Taxation and Revenue Department announced a tax amnesty program that will run through December 31, 2018.

Connecticut Updates Voluntary Disclosure Program

Connecticut’s Voluntary Disclosure Program allows businesses that are not in compliance with Connecticut tax laws to voluntarily come forward to bring their accounts into compliance in return for favorable terms.

New Jersey Enacts Tax Amnesty Bill

New Jersey legislature enacted legislation requiring the Division of Taxation to establish a 90-day state tax amnesty period.

California Issues Guide for Manufacturing and Research & Development Partial Exemption

California issued an updated tax guide for the state’s expanded manufacturing, research, and development partial sales and use tax exemption.

Certain Cleaning Services Exempt from New York Sales Tax

A taxpayer’s carpet cleaning services are exempt from New York sales tax, but its other cleaning services and floor repair services are subject to sales tax.

Washington Issues Guidance on the Taxability of Unredeemed Gift Cards

Washington has addressed options for businesses to report or recognize income from unredeemed and abandoned gift cards.

Software as a Service Taxable in Rhode Island, Effective October 1, 2018

Effective October 1, 2018, Software as a Service (SaaS) is subject to Rhode Island sales and use tax.

Washington Provides Guidance on Taxability of Federal Government Employee Purchases

Washington has provided guidance informing federal government employees that their purchases are only exempt from Washington sales tax if they are paid for by the federal government.

Online Travel Companies Responsible for Hotel Occupancy Taxes in Pennsylvania

Effective January 22, 2019, booking agents are required to collect Pennsylvania state and local hotel occupancy taxes on the full retail rate charged for a hotel room.

Mobile Application Program and Bundled Services Subject to Texas Sales Tax

In a private letter ruling, the Texas Comptroller found a taxpayer’s mobile application program and bundled services taxable as data processing services.

South Carolina Finalizes Economic and Marketplace Nexus Ruling

The South Carolina Department of Revenue will require remote sellers to collect and remit tax if they exceed the state’s economic nexus threshold, effective November 1, 2018.

Remote Seller’s Sales Fulfilled from Third-Party Warehouse Taxable in Missouri

An out-of-state seller’s sales of products fulfilled by a third-party warehouse in Missouri were subject to Missouri sales tax.

Out-of-State Businesses Doing Hurricane Florence Repair Work Not Required to Register or File and Pay South Carolina Taxes

Out-of-state business performing specified Hurricane Florence disaster repair work are not required to register or file and pay South Carolina sales tax.

New Jersey Enacts Marketplace Nexus Legislation

New Jersey has enacted marketplace nexus legislation that requires marketplace facilitators to collect sales tax on sales they facilitate for marketplace sellers, effective November 1, 2018.

D.C. Proposes Emergency Economic Nexus Legislation

The District of Columbia has proposed economic nexus legislation that would require remote sellers to collect sales tax on sales into the U.S. capital if they exceed an economic threshold.