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 Enacts Economic Nexus Regulation

Tennessee enacted new economic nexus regulations, applicable to remote sellers who engage in regular solicitation of consumers in Tennessee through any means and make sales to Tennessee consumers exceeding a certain threshold.

North Carolina Enacts Exemptions for Certain Digital Goods

Effective retroactively to October 1, 2019, North Carolina has enacted sales and use tax exemptions for certain digital goods.

Ohio Issues Guidance on Taxability of Electronic Information Services

Effective July 1, 2020, charges for internet access are no longer subject to Ohio sales and use tax.

Internet Access Service Charges Exempt in Texas Beginning July 1, 2020

Effective July 1, 2020, separately stated charges for internet access are no longer subject to Texas sales tax.

Internet Access Service Charges Exempt in South Dakota Beginning July 1, 2020

Effective July 1, 2020, charges for internet access are no longer subject to South Dakota state and municipal sales tax.

North Carolina Expands Large Fulfillment Facility Exemption

Effective July 1, 2020, North Carolina has expanded its large fulfillment facility exemption.

Internet Access Service Charges Exempt in Wisconsin Beginning July 1, 2020

Effective July 1, 2020, charges for internet access services are no longer subject to Wisconsin sales and use tax.

Arkansas Issues Guidance Regarding Filing Obligations of Marketplace Sellers

Arkansas has issued a letter opinion regarding the filing obligations of marketplace sellers who make sales only through a marketplace facilitator.

D.C. Provides Guidance on Restaurant Sales Made Through a Marketplace Facilitator

D.C. has issued a notice regarding the sales tax treatment of restaurant sales of food, drink and alcohol made through a marketplace facilitator.

Maryland Enacts Sales Tax Exemption for Qualified Data Centers

Effective July 1, 2020, Maryland has enacted a sales and use tax exemption on certain personal property for qualified data centers.

Rhode Island Issues Guidance on Telework During COVID-19 Pandemic

For the duration of the coronavirus state of emergency, Rhode Island will not seek to establish nexus for sales and use or corporate income tax purposes solely because an employee is temporarily working from home.

Chicago Extends Tax Payment Due Dates due to COVID-19

To help reduce the financial impact of COVID-19, Chicago has extended tax payment due dates for the periods July 2019 through September 2020.

Louisiana Enacts Marketplace Nexus Legislation

Effective July 1, 2020, Louisiana has enacted marketplace nexus provisions.

Peer-to-Peer Car Sharing Services to Remain Taxable in Maryland

Maryland has extended the sunset date for the imposition of sales tax on peer-to-peer car sharing services until June 30, 2021.

Support Components for Building Signs Taxable as Tangible Personal Property in Virginia

In Virginia, a transaction for the sale and installation of a manufactured sign, including permanently attached supports, is a taxable sale of tangible personal property regardless of the fact that the sign may become part of real property.

Concrete Mixing Services Exempt in South Carolina

Fees charged to a road construction contractor for mixing concrete for use in road construction were exempt in South Carolina.

Maryland Enacts Exemption for Hearing Aid Items

Effective July 1, 2020, Maryland has enacted a sales and use tax exemption for specified hearing aid items.

Sales of Coffee and Tea Brewing Equipment Qualify for Reduced Manufacturing Rate in Alabama

A manufacturer’s sales of coffee and brewing equipment were subject to Alabama’s reduced sales and use tax rate since the products qualify as machines used to process tangible personal property.

Digital Planners and Educational Video Courses Taxable as Digital Goods in Arkansas

A taxpayer’s sales of digital planners and educational video courses were taxable in Arkansas since they qualify as taxable digital goods.

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.

Cook County Illinois Will No Longer Collect Amusement Tax on Paid Television, Effective April 1, 2020

Effective April 1, 2020, the Cook County Department of Revenue will no longer collect amusement tax on sales of paid television.

Home Staging Provider’s Service Charges Exempt in Virginia Since Separately Stated on Invoice

Design services provided by a home staging company were not subject to Virginia sales tax.

Indiana’s Temporary Storage Exemption Does Not Apply to Taxpayer’s Purchase of Computer Software

A taxpayer was denied a refund of Indiana sales tax paid on purchases of computer software delivered to Indiana since Indiana does not offer a temporary storage exemption for sales tax.

Church’s Purchases of Supplies and Food Not Exempt in Arkansas

A church was denied a request for exemption from Arkansas sales tax on purchases of janitorial supplies, office supplies, groceries and packaged food, and curriculum.