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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.

Mississippi Extends Sales Tax Exemption for Health Care Industry Facilities

Mississippi has extended the sales tax exemption for materials, machinery, and equipment used to construct, expand, or improve qualifying health care industry facilities under the Health Care Industry Zone Act. Learn what the extension covers and how it affects eligible projects.

Utah Approves Sales Tax Breaks to Support Public Transit Construction

Utah provides a sales tax exemption for construction materials sold to public transit districts and, in qualifying cases, to subcontractors when the property is clearly identified and becomes part of transit-owned real property. Learn what qualifies and how the rules support public transit construction projects.

Amazon Inventory Triggers California Tax Bill for Online Seller

A recent decision by the California Office of Tax Appeals highlights a growing issue for online sellers that simply storing products in a state, even without a physical office, can create unexpected tax obligations.

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.

Louisiana Launches New Combined Sales Tax Filing System

Louisiana has launched a new Combined State and Local Sales Tax Return through Parish E-File, allowing businesses to file one uniform return for state and parish sales and use tax. Learn when it applies, what changes for filing frequency, and key compliance issues businesses should review.

Michigan Court Clarifies Resale Exemption

A Michigan court decision clarifies how the resale exemption applies when property is purchased for resale but used temporarily before sale. The ruling offers important guidance for dealers, resellers, and businesses defending sales or use tax assessments.

North Dakota Clarifies Sales Tax Rules for Native American Transactions

North Dakota guidance explains when sales to enrolled Native Americans on a reservation are exempt, when non-Native Americans retailers must still collect tax, and how use tax can apply after goods leave the reservation. It also notes that tribal-state agreements can override the default rules.

Michigan Court Reinforces Strict Invoice Requirements for Labor Exemptions

A Michigan Court of Appeals decision confirms that businesses claiming sales tax exemptions for labor must properly itemize exempt labor charges on invoices and keep adequate records. The ruling highlights heightened audit risk when documentation is incomplete or invoice detail is missing.

Missouri Clarifies Sales Tax Treatment for Ice Sold in Vending Machines

A Missouri Department of Revenue letter ruling explains how bulk and bagged ice sold through vending machines is taxed, including the special vending-machine sales tax basis and sourcing rules. Learn what ice sellers and vending operators need to know.

Texas Court Rules Reusable Chemical Containers are Tax Exempt in Manufacturing

A Texas appeals court held that reusable chemical containers, plus related cleaning, delivery, and pickup services, can qualify for the manufacturing exemption from sales and use tax. The ruling offers important guidance for manufacturers using returnable containers in production and distribution.

Kentucky Removes 200 Transaction Count from Nexus Consideration

Effective August 1, 2026, the Kentucky nexus threshold will change from either 200 transactions or $100,000 in gross sales to only $100,000 in gross sales.

Utah Enacts New 2% Excise Tax on Digital Content

Utah has enacted a new 2% sales‑based excise tax imposed on the sales price of certain digital transactions.

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.

Illinois Lease Tax Change Raises Concerns Over Double Taxation

Illinois’ new tax on lease receipts took effect Jan. 1, 2025, but the law does not provide transition relief for property already taxed when purchased for lease. That creates potential double taxation on pre-2025 lease contracts and raises major concerns for lessors and lessees.

Alabama to Temporarily Eliminate State Sales Tax on Groceries

Starting May 1 through June 30, 2026, Alabama will temporarily remove the state sales tax on most food items. The temporary tax break comes as part of Act 2026-604, which removes the state sales and use tax on qualifying food…

Utah Enacts Sales Tax Exemption for Sales of Food and Food Ingredients or Prepared Food by Home Cooks

Effective July 1, 2026, Utah has enacted a state sales tax exemption for sales of food and food ingredients or prepared food sold by a home cook, including home food products sold at a direct-to-sale farmers market or direct-to-sale location.…

Colorado Amends Rules for Sales Tax Return Filing Frequency Basis

Colorado has amended its sales tax filing-frequency rules, including updated thresholds that allow some retailers collecting less tax each month to file less often. Learn what changed, when the new rules apply, and how the update affects monthly, quarterly, and annual filers.

South Carolina Holds that Amazon Owes Tax on Pre-Wayfair Third Party Sales

A judge has held that Amazon owes uncollected taxes, penalties, and interest on third-party sales made pre-Wayfair.

Ohio Supreme Court Upholds CAT Assessment on Contract Manufacturer

The Ohio Supreme Court upheld a Commercial Activity Tax assessment against a contract manufacturer, ruling that receipts were properly sitused to Ohio when goods were shipped to an Ohio distribution center before later resale and shipment out of state. The decision offers important guidance on CAT sourcing and refund claims.

Washington Announces Temporary Penalty Relief Program for Tax Changes due to S.B. 5814

Washington’s Department of Revenue is offering temporary penalty relief for businesses affected by ESSB 5814, which made certain services newly subject to retail sales tax beginning Oct. 1, 2025. The program can waive penalties for qualifying unpaid or uncollected tax tied to those changes.

Washington Appeals Court Rules Gas Does Not Need to Physically Touch Products to Qualify for Exemption

A Washington Court of Appeals decision held that natural gas used in semiconductor manufacturing can qualify for a tax exemption even without direct physical contact with the product. The ruling clarifies how Washington interprets the gases-and-chemicals exemption and could affect other manufacturers claiming similar relief.

Washington Court of Appeals Ruling Clarifies Sourcing of Legal Services

A Washington Court of Appeals decision clarifies that legal-service receipts for B&O tax apportionment must be sourced to where the client receives the benefit of the work, not simply the billing address. The ruling has important implications for law firms, multistate service providers, and audit risk.

Wisconsin Court Holds StubHub is Required to Pay Sales Tax and Subject to Negligence Penalty

A Wisconsin Court of Appeals decision held that StubHub is liable for sales tax on ticket resales and is also subject to a negligence penalty for failing to pay it. The ruling has important implications for ticket marketplaces and other online platforms facilitating taxable transactions.

Indiana Enacts Tax Amnesty Program

Indiana’s Department of Revenue will offer a limited‑time amnesty program for unpaid state tax liabilities due before January 1, 2023 — with penalties and interest waived. Find out who qualifies and how to participate before the window closes.