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.

Sellers May Be Contacted About Other Taxes Under New Streamlined Sales Tax Governing Board Rule

Sellers registered through SSTP may be contacted about other taxes in the member states where they register with the SSTP.

Sales and Installation of Computer Cabling Are Exempt in Ohio

Effective October 22, 2019, sales and installation of computer cabling are exempt from Ohio sales and use tax but the contractor owes use tax on the cost of the materials installed into real property.

Utah Expands Taxation to Specified Services, Repeals and Creates Exemptions

Utah has enacted legislation with numerous sales tax changes, effective April 1, 2020.

Texas Adopts Economic Nexus Provisions for Franchise Tax

Texas has amended a tax regulation to apply the state’s economic nexus threshold to Texas franchise tax, beginning January 1, 2020.

Philadelphia Adopts Economic Nexus Provisions for Business Income and Receipts Tax

Philadelphia has amended its tax regulations to apply an economic nexus threshold for purposes of the city’s Business Income & Receipts Tax.

Pennsylvania Issues Guidance on Requirements for Use of Direct Pay Permits

The Pennsylvania Department of Revenue has issued a bulletin with guidance on the proper use of direct pay permits.

Hawaii Enacts Legislation with Marketplace Nexus and Notice & Reporting Requirements Provisions

Hawaii has enacted legislation with marketplace nexus and notice and reporting requirements provisions, effective January 1, 2020.

Video Streaming Services Subject to Tax in Kentucky

Effective July 1, 2019, video streaming services are subject to Kentucky excise tax and gross receipts taxes as taxable “multichannel video programming services.”

Chicago Increases Personal Property Lease Transaction Tax, Effective January 1, 2020

Effective January 1, 2020, Chicago’s Personal Property Lease Transaction Tax increases from 5.25% to 7.25% on charges for cloud services.

Point-of-Sale Services Subject to Washington Sales and Use Tax

The purchase of point-of-sale (POS) services by a taxpayer was subject to Washington sales and use tax as taxable digital automated services.

Michigan Enacts Marketplace Nexus Legislation

Michigan has enacted new tax remittance requirements for marketplace facilitators, effective January 1, 2020.

Washington Enacts B&O Tax Surcharge on Services and Increases B&O Tax Rate on Financial Institutions

Effective January 1, 2020, Washington will impose a B&O tax surcharge on businesses primarily engaged in one or more specified services.

D.C. Consumer Use Tax to Be Filed on Online Portal, Effective November 20, 2019

Effective November 20, 2019, D.C. taxpayers are required to file the Consumer Use Tax return and remit payment through the MyTax.DC.gov website.

New Home Rule City Established in Colorado

The city of Castle Pines, Colorado will become a self-collected home rule municipality, effective January 1, 2020.

Florida Reduces Sales Tax Rate for Rental, Lease, or License to Use Real Property

The Florida sales tax rate imposed on commercial rentals will decrease from 5.7 to 5.5 percent, effective January 1, 2020.

North Carolina Enacts Marketplace Nexus Legislation

Effective February 1, 2020, North Carolina has enacted marketplace nexus legislation.

Oregon Enacts New Gross Receipts Tax

Effective January 1, 2020, Oregon has enacted legislation that imposes a new gross receipts tax (corporate activity tax) on certain businesses.

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 June 21, 2018.

Utah Issues Guidance on Business Activities and Sales Tax Nexus

The Utah Tax Commission has issued guidance on how business activities can create sales tax nexus in Utah.

Ohio Enacts Exemption for Feminine Hygiene Products and Incontinence Products

Ohio has enacted a sales tax exemption for sales of feminine hygiene products and certain incontinence products.

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.

Nebraska Announces Temporary Penalty and Interest Relief for Certain Remote Sellers and Marketplace Facilitators

Nebraska has issued a General Information Letter stating that the Tax Commissioner will grant a temporary penalty and interest waiver to certain remote sellers and marketplace facilitators.

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.

Arizona TPT License Renewals Due January 1, 2020

All businesses that are licensed with the Arizona Department of Revenue are required to renew their Transaction Privilege Tax (TPT) license by January 1, 2020.