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.

North Carolina Rules Subscription Fees for SaaS Not Subject to Sales Tax

In response to a taxpayer request, the North Carolina Department of Revenue completed a private letter ruling regarding sales tax payments on subscription fees for software as a service (SaaS).

North Dakota Enacts Sales and Use Tax Exemption for Senior Citizen Organizations

North Dakota has enacted legislation that expands the sales and use tax exemptions for qualifying sales made to senior citizen organizations.

Tennessee Enacts Exemption for Certain Film Productions

Tennessee has enacted a sales and use tax exemption for qualified film or television production costs provided the Commissioners of Revenue and Economic and Community Development determine that the exemption is in the best interests of the state (such as jobs created or community impact).

Hotel Rooms Booked through Marketplace Facilitators are Subject to West Virginia Hotel Occupancy Tax

Effective January 1, 2022, where a hotel or hotel operator contracts with a marketplace facilitator to offer hotel rooms, the marketplace facilitator is responsible to collect and remit tax when it meets the state’s economic nexus requirements.

Rental Cars Used in Chicago – A Personal Property Lease Transaction Tax Saga

The Illinois Supreme Court held that the City of Chicago’s ruling to require rental car companies located within three miles of the City to collect tax is unconstitutional under the home rule article of the Illinois Constitution.

Washington Amends Lease and Rental Excise Tax Rule for Certain Construction Scenarios

The Washington rule on leases or rentals of tangible personal property has been amended to clarify the state’s polices for specific construction services like concrete pumping.

Virginia Temporarily Exempts Personal Protective Equipment from Sales Tax

Virginia adopted an emergency bill exempting personal protective equipment bought for business use from sales tax until further notice.

North Carolina Letter Ruling Addresses Taxation of Cloud-Based Software Application Access

The North Carolina Department of Revenue issued a private letter ruling to address the taxability of a taxpayer’s free application that is part of its web-based services provided via a software as a service (SaaS) model.

Wisconsin Removes Economic Nexus Transaction Threshold

Wisconsin has eliminated the state’s 200 transaction economic nexus threshold for remote sellers effective February 20, 2021, while retaining the $100,000 threshold.

Texas Provides Guidance Regarding Manufacturing Exemptions

The Texas Comptroller issued new guidance stating that exemptions for state sales and use tax apply to those who manufacture, fabricate, or process tangible personal property for sale.

Nebraska Provides Guidance Document on Use Tax

The Nebraska Department of Revenue released a guide on the handlings of use tax in the state regarding remitting use tax, exemptions, interest, and penalties.

Maryland Expands Tax on Digital Goods

Effective March 14, 2021, the sale of canned or commercial off-the-shelf software obtained electronically is considered a digital good and is subject to Maryland sales and use tax, as well as the sale of electronically delivered software and software as a service (SaaS).

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.

Wisconsin Requires Remote Sellers to Collect Sales Tax

Wisconsin will require certain remote sellers to collect and remit sales and use tax, effective October 1, 2018.

Maine Extends Sales Tax Nexus Relief for COVID-19 Through 2021

Maine announced that the state will extend sales tax nexus relief for employees working remotely in the state due to COVID-19 through 2021.

Delaware Begins 2021 Unclaimed Property Voluntary Disclosure Agreement Program

The Delaware Secretary of State has posted the invitation mailing dates of its 2021 unclaimed property Voluntary Disclosure Agreement Program.

Elective Ultrasound Service Found Taxable in California

California determined that the true object of a taxpayer’s prenatal imaging business was the images captured, not the ultrasound service.

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.

Services to Measure Advertising Effectiveness Are Taxable in New York

A taxpayer’s services to measure the effectiveness of advertising were subject to New York sales and use tax since they qualify as taxable information services.

Pennsylvania Announces Voluntary Compliance Program for Retailers with Inventory In-State

Pennsylvania is offering a voluntary compliance program for businesses that have inventory or store property in-state but are not registered to collect and remit taxes.

Apple Amends and Expands Complaint Against Chicago Streaming Tax

Apple expanded its claim that Chicago’s streaming tax violates the U.S. Constitution’s due process and commerce clauses by including their streaming services in the city’s 9% amusement tax.

Canada Announces Temporary GST and HST Relief for Face Masks and Face Shields

The Government of Canada announced a proposed measure to remove the GST/HST on supplies of face masks, respirators and face shields made after December 6, 2020.

Iowa Provides Guidance on Exemption for Computers and Computer Peripherals

Iowa has provided guidance regarding the state’s sales tax exemption for computers and computer peripherals.

City of Chicago Announces Economic Nexus Provisions

The City of Chicago has announced in an information bulletin that it will impose economic nexus provisions.