Back to Sales Tax Updates

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.

Missouri Rules That an Online Ordering Company for Restaurant Food Delivery is Not Required to Collect and Remit Tax

In a letter request dated July 17, 2024, the taxpayer, an online ordering company that allows customers to order meals and beverages from various restaurants through their website and mobile application, is asking the Missouri Department of Revenue (Department) if they are required to collect and remit sales tax as a Market Facilitator.

Texas Issues Guidance on Sales and Use Tax Treatment of Imported Goods Stored in Bonded Warehouse

Texas has issued a letter ruling providing guidance on the sales and use tax treatment of imported goods stored in a bonded area.

Michigan Extends Tax Exemption for Data Centers to Boost Industry Growth

In a move to solidify Michigan’s position as a hub for data center operations, the state legislature has amended the Use Tax Act with Senate Bill 237.

Illinois Releases Letter Ruling on Health and Fitness Software and App Downloads

In a letter ruling dated September 17, 2024, the taxpayer, a foreign-based company, who sells subscription-based coaching for health, fitness, mental wellness, and nutrition, has asked the Illinois Department of Revenue for a Private Letter Ruling (PLR) regarding the taxability of its subscriptions.

Settlement Reached by Publisher in Ohio Gross Receipts Tax Case

In July 2024, a settlement was reached in Chicken Soup for the Soul Publishing LLC’s appeal of a $143,000 Ohio commercial activity tax (CAT) assessment, and the Ohio Board of Tax Appeals issued an order remanding the dispute to the Ohio Department of Taxation.

Personalized Astrological Birth Chart Services Are Not Subject to New York State Sales Tax

The New York Department of Taxation and Finance (NYDTF) recently released an advisory option related to the taxability which concluded that the sales of personalized astrological birth chart reading services are not subject to New York State and local sales and use taxes.

Driving Range’s Golf Balls Do Not Qualify for Resale Exemption in Texas

After an administrative hearing, a Texas Administrative Law Judge (ALJ) ruled that golf balls purchased by a golf course for use at the golf course’s driving range and putting green did not qualify for a resale exemption.

Date of Payment for Gym Membership Dues Determined Eligibility for Florida Sales Tax Holiday

The Florida Department of Revenue (DOR) issued a Technical Assistance Advisement stating that the date that gym membership dues were paid was the controlling date for determining if the sale qualified for the state’s Freedom Month Sales Tax Holiday (“Freedom Holiday”).

Mississippi Announces New Method to Submit Voluntary Disclosure Agreements

The Mississippi Department of Revenue (DOR) has announced a new method for taxpayers to submit Voluntary Disclosure Agreements (VDAs).

Louisiana To Begin Collecting Sales Tax on Digital Products

Louisiana passed House Bill 8, which will go into effect January 1, 2025, and applies sales tax to previously untaxed digital goods.

Louisiana to Increase State Sales Tax Rate

Effective January 1, 2025, the Louisiana state sales tax rate will increase to a total of 5%. House Bill 10 provides a temporary increase of the state rate from 4.45% to 5% effective January 1, 2025, through December 31, 2029.

Chicago Passes 2025 Budget

In a last-minute change, Chicago\’s budget eliminated the proposed property tax hike, but the approved budget still includes a vast list of tax increases.

San Francisco Voters Approved Proposition M, Local Small Business Tax Cut Ordinance

Voters in San Francisco approved Proposition M (measure), causing significant changes to San Francisco Gross Receipts Taxes (Gross Receipts).

California Retailer Claims that Illinois Remote Seller Rules are Unconstitutional

Coast to Coast Computer Products, a California based retailer of computer supplies, has filed a petition arguing that the Illinois Department of Revenue’s rules regarding remote sellers are unconstitutional.

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.

Canada Announces GST and HST Tax Holiday

The Department of Finance Canada has announced a Goods and Services Tax/Harmonized Sales Tax (GST/HST) tax holiday that will run from December 14, 2024, to February 15, 2025, and that will apply to a wide range of goods.

New York Releases Advisory Opinion on Charges Admission to Mystery or Escape Rooms

In an Advisory Opinion, dated August 20, 2024, the petitioner, who charges its customers an entry fee into a locked room where a group of up to ten must solve puzzles, riddles, and other exercises with the means of escaping the room or solving a mystery, has asked the Department to advise on the taxability of such admission charges.

The City and Borough of Sitka, Alaska approves Tax Free Days

A motion to authorize November 29 and November 30 as Sales Tax Free Days for 2024 in the city of Sitka was approved by a majority vote.

Detroit, Michigan to Accept Cryptocurrency for Payment of Taxes and Fees

In a news release, the City of Detroit announced that it will soon provide Detroit residents with the option to pay taxes and other city fees using cryptocurrency through a secure platform managed by PayPal.

Missouri Manufacturing Exemption Does Not Apply to Company Making Custom Products

The Missouri Department of Revenue (DOR) issued a letter ruling stating that the state’s manufacturing exemption for sales and use tax does not apply to a company that performs custom machining and laser services for parts and materials.

Florida Provides Guidance on the Taxability of Holiday Decorations

The Florida Department of Revenue recently released TIP No. 24A01-14 which provides guidance on the taxability of interior and exterior holiday decorations.

North Carolina Online Retailer Files Complaint Against Accounting Firm Over Failure to Advise on Wayfair Nexus Implications

North Carolina-based online retailer lodged a complaint in North Carolina Business Court against their tax advisory firm.

Services to Canned Computer Software, and Digital Goods, are considered taxable in PA

The Commonwealth of Pennsylvania Department of Revenue recently shared written guidance on the taxability of Canned Computer Software, Digital Goods, and Related Services.

Nevada Approves Sales Tax Exemption for Diapers

On November 5, 2024, Nevada voters approved a ballot measure that will exempt diapers from Nevada sales and use tax, effective January 1, 2025.