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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.

New York Rules SaaS Vendor Management System Fees as Taxable Software Licensing

The New York Tax Appeals Tribunal has upheld an earlier ruling by an administrative law judge (ALJ) that fees charged by a taxpayer for their vendor management system (VMS), provided through a software-as-a-service (SaaS) model, are subject to taxation as software licensing.

Illinois Social Media User Tax and Digital Ad Tax Face Further Legal Challenges

NetChoice filed new lawsuits on September 11, 2026, challenging Illinois\’ Social Media User Tax and Digital Ad Tax as unconstitutional and federally preempted.

District of Columbia General Sales Tax Rate Increases to 7% on October 1, 2027

Washington D.C.\’s sales tax rate rises from 6% to 7% on October 1, 2026, covering tangible property, digital goods, and services. See what\’s changing.

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.

New York Offers Penalty and Interest Discount Program for Sales Tax

New York\’s PAID program waives 100% of penalties and 50% of interest on eligible sales tax bills paid in full by December 31, 2026. No application needed.

Illinois Guidance: Retailers’ Occupation Tax Does Not Apply to Incidental Refreshments Included with Party Room Rentals

Illinois GIL ST 26-0035: incidental refreshments in party room rentals aren\’t ROT-taxable — but the business owes use tax on the food cost.

Idaho Amended Form 850 Now Available Through TAP Portal

Effective July 30, 2026, Idaho taxpayers can file amended Form 850 (Sales and Use Tax Return) online through the Idaho State Tax Commission\’s TAP portal.

DNA Testing Services Are Nontaxable, Though Kits Are Taxable in Georgia

Georgia ruled DNA testing services are exempt from sales tax while sample kits are taxable — the taxpayer owes use tax on kits (LR SUT-2026-02).

Missouri Medical Equipment Ruling Highlights the Importance of Exemption Definitions

Missouri\’s DME sales tax exemption is limited to iron lungs, oxygen tents, hospital beds, and wheelchairs — lift chairs and ramps don\’t qualify (LR 8406).

When Are Prescription Drug Purchases Exempt? Louisiana Court Focuses on Medicare-Specific Facts

Louisiana\’s Fifth Circuit held that healthcare providers\’ prescription drug purchases are exempt from sales tax when administered to Medicare Part B patients.

Arizona Expands TPT Exemption to Textbook Rentals

Arizona HB 2786 exempts textbook rentals from Transaction Privilege Tax starting October 1, 2026 — aligning with the existing exemption for textbook sales.

Michigan Court Rules Medical Items Did Not Qualify for Prosthetic Device Exemption

Michigan Court of Appeals: medical supplies like bandages and incontinence products aren\’t prosthetic devices under MCL 205.54a(1)(k) (RMS v. Treasury).

Washington Clarifies Tax treatment of SaaS Implementation Services and Travel Costs

Washington ruled SaaS implementation services and travel reimbursements are taxable when exclusively connected to a taxable SaaS product.

North Carolina Enacts Tax on Peer-to-Peer Vehicle Rentals

North Carolina will tax peer-to-peer vehicle rentals at 3%–8% starting October 1, 2026. Providers must register with the DOR before that date.

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.

Maryland Enacts New Tax on Digital Advertising

The Maryland legislature overrode Governor Larry Hogan’s veto of a new tax on digital advertising (H.B. 732) on February 12, 2021, making Maryland the first state in the country to adopt a tax on digital advertising.

Rhode Island Launches Tax Amnesty Program

Rhode Island created a temporary tax amnesty program as part of the FY 2027 budget legislation.

Washington Appeals Court Rejects Remote Sourcing for Title and Escrow Services

The Washington Court of Appeals ruled title and escrow services are sourced to the property location, even for remote work — upholding an $8.3M assessment.

Missouri Establishes Rounding Procedures for Cash Transactions

Missouri HB 2819 lets sellers round cash transaction totals to the nearest nickel — sales tax is calculated before rounding. Effective August 28, 2026.

Washington Provides Guidance Regarding Taxability of Digital Automated Services

Washington DOR clarifies DAS taxability under ESSB 5814 — covering professional services, data processing, and digital features added to existing products.

Illinois Updates PIO-125: Nexus Now Covers Servicepersons, Plus New Threshold and Sourcing Guidance

Illinois PIO-125 (2026) expands nexus guidance to servicepersons, clarifies the $100K threshold for ROT and SOT, and updates sourcing rules.

Cloud-Based Educational Services Exempt from Indiana Sales Tax

Indiana ruled cloud-based educational and SaaS training services aren\’t taxable — no permanent right of use (Revenue Ruling 2026-04-RST).

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.

NFL’s Cardinals are Liable for Transaction Privilege Tax on Ticket Fees

Arizona Court of Appeals rules Cardinals ticket Facility Use Fees are taxable under TPT — upholding over $1.5M in assessments from the state and Glendale.