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.

Tennessee Offers Tax Relief for December 2023 Storm Victims

The Tennessee Department of Revenue (DOR) is offering tax relief to residents affected by the severe weather in Tennessee on December 9, 2023.

Arkansas Rules Leased Pallets Do Not Qualify for Resale Exemption

In November 2023, the Arkansas Tax Appeals commission released a ruling in a case that involves a taxpayer who filed petitions seeking relief from the denial of proposed refund claims related to sales and short-term rental taxes on pallets.

Rhode Island Issues Ruling Regarding Taxability of Entertainment Services

Rhode Island has issued a declaratory ruling regarding the taxability of entertainment services in response to a company’s request for ruling.

Maryland Issues Guidance Regarding Private Letter Rulings

The Maryland Comptroller has issued a technical bulletin providing guidance and procedures for submitting a petition for a Private Letter Ruling (PLR), effective December 22, 2023.

Kansas Reduces Sales and Use Tax Rate on Food and Food Ingredients

Effective January 1, 2024, Kansas’s state sales and use tax rate on food and food ingredients and certain prepared food is reduced to 2%.

South Dakota Requires Use Tax from Infrastructure Management Company

In a recent ruling by the South Dakota Supreme Court, an infrastructure management company was found liable for over $75,000 in unpaid use taxes and interest.

Nebraska Expands Sales Tax Exemptions: Supporting Non-Profits, Agriculture, and Construction

Overall, these changes aim to support specific sectors of the economy, reduce financial burdens on certain organizations, and streamline processes for construction projects.

Auto Finance Company May Claim Bad Debt Deductions Despite Repossessions Per Indiana Tax Court

An Indiana Tax Court released a ruling upholding a taxpayer’s refund claims. Case 20T-TA-00017 was an appeal brought by the Indiana Finance Financial Corp in relation to the denial of sales tax refund claims in 2017 and 2018.

Illinois Provides Information Bulletin Regarding New Payment Equals Agreement Statute

The Illinois Department of Revenue has released helpful guidance on legislation already enacted that alters how payments for sales, use, and excise taxes and fees are understood.

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.

Colorado Adopts New Rule for Buyers’ Claims for Sales and Use Tax Refunds

On January 2, 2024, the Colorado Department of Revenue adopted a new rule regarding buyers’ claims for refunds of sales or use tax paid.

New Jersey to Launch New Taxpayer Portal in Mid to Late 2024

New Jersey has issued a press release announcing that they will be launching a new taxpayer portal in 2024, with Sales and Use tax as the first tax type to be available to be filed through the new taxpayer portal.

Colorado Localities Change to State-Administered Sales Taxes

Two Colorado localities, Town of Carbondale and City of Edgewater, made the switch from self-administered to state-administered for sales tax effective January 1, 2024.

New Mexico Provides Gross Receipts Regulations for Digital Advertising

The New Mexico Department of Revenue has recently clarified rules regarding the application of the gross receipts tax to digital advertising services on websites accessible within the state.

Michigan Issues Guidance on Sales and Use Tax Refund Procedures

The Michigan Department of Treasury (Department) has issued a bulletin providing guidance on how sellers and purchasers can request refunds of Michigan sales and use tax.

Florida Decreases Sales Tax Rate on Commercial Rentals

Florida’s state sales tax rate on the renting, leasing, letting, or granting a license to use real property (“commercial rentals”) decreases from 5.5% to 4.5%.

Iowa Sales and Use Tax Exemption for Certain Purchases of Computers Ending in 2024

Starting January 1, 2024, there will be changes to Iowa\’s sales tax exemptions for certain businesses buying computers and computer peripherals.

Remote Retailer Files Challenge to Illinois “Leveling the Playing Field” Laws

PetMeds, a Florida based online retailer of pet supplies and medication, has recently lodged a petition with the Illinois Independent Tax Tribunal to challenge an audit assessment.

Maryland Announces Transition to New Online Filing Portal

Effective February 2024, online filing of many business taxes, including Withholding, Sales and Use, and Admissions and Amusements in Maryland will move to a new online filing portal, Maryland Tax Connect.

Arizona TPT License Renewals Due January 1, 2024

The Arizona Department of Revenue (DOR) has sent out a reminder that Transaction Privilege Tax (TPT) Licenses must be renewed by January 1, 2024.

Washington State Grants Tax Exemption to Publishing Industry Leaders

Starting January 1, 2024 certain businesses in Washington state engaged mainly in printing or publishing newspapers or eligible digital content will be exempt from the business and occupation (B&O) tax.

Alabama Department of Revenue Announces Change in Tax Payment Processing

The Alabama Department of Revenue is changing banks, affecting how taxes are paid through My Alabama Taxes using accounts that employ a debit block requiring an Originating Company ID (debit block code) for ACH debits.

Streaming Platform Subject to Tax in Utah Due to Use of Bundled Transactions

An Administrative Law Judge for the Utah State Tax Commission released an order on Utah Appeal case 22-1274 upholding the decision of the Utah State Tax Business Taxes and Discovery Division of the Utah State Tax Commission (the Division) to charge a streaming platform (the Taxpayer) sales and use tax on their offerings.

Michigan’s Data Center Tax Reporting: What You Need to Know

Michigan\’s Treasury Department now requires data center operators claiming sales or use tax exemptions for equipment sales or purchases to report annually using Form 5726.