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.

British Columbia Extends Tax Filing and Payment Deadlines due to COVID-19

As part of its COVID-19 action plan, British Columbia’s Office of the Premier has announced that the Province is extending tax filing and payment deadlines.

North Carolina Issues Marketplace Facilitator Guidance for Auctioneers

Effective February 1, 2020, an auctioneer that meets the definition of a marketplace facilitator and meets either of the state’s marketplace nexus thresholds is required to collect and remit North Carolina sales and use tax.

Puerto Rico Enacts Temporary Exemptions for COVID-19

Puerto Rico’s Governor has enacted temporary exemptions to address the impact of COVID-19.

Washington Enacts Additional Service and Other Activities B&O Tax Rate to Fund Workforce Education

Washington has created an additional B&O tax rate under the Service and Other Activities classification to fund Workforce Education.

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.

Tennessee Issues Guidance on Exemption for Agricultural Water

Effective July 1, 2019, Tennessee enacted a sales and use tax exemption for water purchased by a qualified farmer or nursery operator.

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.

Chicago Updates Cloud and Software Lease for Release Rule

Chicago modified its application of the lease for re-lease exemption to include certain software and cloud products, effective July 1, 2020.

Texas Issues Updated Guidance on Taxability of Educational Products and Services

Texas has provided updated guidance discussing the tax treatment for sales of educational products and services.

Texas Amends Rules for Remote Sellers to Establish Economic Nexus

Starting October 1, 2019, remote sellers with sales exceeding $500,000 in total Texas revenue must register to collect and remit tax.

Wisconsin Baseball Stadium Sales Tax Ends March 31, 2020

Wisconsin’s 0.1% baseball stadium sales and use tax will end on March 31, 2020.

Vermont Issues Updated Guidance for Construction Contractors

The Vermont Department of Taxes has provided updated guidance on the application of sales and use tax to contractors.

Software Subscription Services Subject to Tax in South Carolina

South Carolina has issued a private letter ruling regarding the application of sales and use tax to a cloud-based software subscription service.

Online Software Subscription Fees Taxable in Massachusetts

Massachusetts found that a taxpayer’s subscription fees for online software products are subject to sales tax as sales of tangible personal property.

New York Implements Paper Carryout Bag Reduction Fee

Effective March 1, 2020, the state of New York authorizes counties and cities the option to impose a five-cent paper carryout bag reduction fee.

Georgia Enacts Marketplace Nexus Provisions

Georgia has enacted new requirements for marketplace facilitators, effective April 1, 2020.

Washington Updates Taxability Rule on Political Subdivision Sales and Purchases

Washington updated its rules on exemptions on sales between political subdivisions.

Electricity to Power HVAC Units for Telecommunications Equipment Exempt in Kansas

Kansas ruled that a telecom company is exempt from sales tax on electricity used to power HVAC units which maintain a constant temperature for its equipment.

Tax Refund for Gift Card Promotion Denied in New York

A retailer’s protest for a refund of tax was denied since the retailer did not properly identify distributed gift cards as purchases of those gift cards during a Back to School promotion.

Membership Fees Subject to Tax in Pennsylvania

The Pennsylvania Department of Revenue has issued a letter ruling discussing the taxability of membership fees for a professional association.

Total Amount of Bundled Transaction Subject to Tax in Alabama

The Alabama Department of Revenue has issued a revenue ruling providing guidance on the application of sales and use tax to bundled transactions.

New Jersey Enacts Exemption for Energy and Utility Services Provided to Recovered Materials Manufacturing Facilities

New Jersey has enacted an exemption for energy and utility services provided to or by a recovered materials manufacturing facility.

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.

Refund Denied in Washington Since Taxpayer Website Advertised Tax Included

A taxpayer was denied a refund of Washington retail sales tax remitted on its ticket sales since the taxpayer’s website advertised the ticket prices as including tax.