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.

Washington Issues Guidance on Taxability of Items Manufactured for Own Commercial or Industrial Use

The Washington Department of Revenue has issued guidance regarding the tax treatment of items that are manufactured for a business’s own commercial or industrial use.

Texas Creates Exemption for Family Care and Menstrual Items

On September 1, 2023, Texas SB 379 went into effect, making many medical, menstrual, maternity, and family care items exempt from sales tax.

California Adopts New Regulations to Clarify Marketplace Facilitator Responsibilities

California has added language to its Code of Regulations to clarify which businesses have responsibilities under their marketplace facilitator laws.

Tennessee Appeals Court Supports Chancery Court in Overturning Revocation of Manufacturing Exemption

On September 6, 2023, the Tennessee Appeals Court at Nashville issued a majority ruling upholding the Chancery Court’s decision in the case Alsco, Inc. v. Tennessee Department of Revenue, number M2022-01019-COA-R3-CV.

Washington Provides Guidance on Taxability of Business Assets

The Washington Department of Revenue (DOR) has issued guidance regarding the taxability of sales of business assets.

Virginia Rates for Underpayment or Overpayment of Tax Will Increase for Q4 2023

For the period of October 1, 2023 through December 31, 2023, Virginia’s interest rates for the underpayment or overpayment of tax will increase to 10%.

Cleaning Company Owner Loses Ohio Responsible Party Appeal

In an appeal involving the listed owner (Daniel Biskind) of an Ohio cleaning company (Contract Cleaning LLC) regarding who was the responsible party for tax assessments issued for the period July-September 2016, the Ohio Board of Tax Appeals (BTA) affirmed the Ohio Tax Commissioner’s findings that Biskind was indeed the responsible party of the business.

Staffing and Payment Processing Services Provided Through Digital Platform are Not Taxable in Tennessee

Staffing augmentation and payment processing services provided by an out-of-state technology company are not subject to sales and use tax in Tennessee.

Hawaii Issues Wildfire Tax Relief Announcement

The Hawaii Department of Taxation (DOT) has issued an announcement detailing the various forms of tax relief available to taxpayers affected by the wildfire disasters in the counties of Maui and Hawai’i.

Illinois DOR Rules Company’s Freezing & Cooling Machinery is Exempt

In a private letter ruling issued on June 2, 2023, the Illinois Department of Revenue ruled that an Illinois company’s machinery was exempt from sales tax due to its role in preserving and maintaining food to be sold.

Washington Releases Guidance for Calculating Tax Due on Meals Provided by Senior Living Communities

Effective July 23, 2023, Washington state has revised its tax rules regarding meals provided to residents of senior living communities.

Massachusetts Sales Tax Holiday Taking Place August 12-13, 2023

Massachusetts will hold a sales tax holiday on Saturday, August 12 and Sunday, August 13, 2023. On these dates, most retail items up to $2500 purchased in Massachusetts for personal use will be exempt from sales tax.

Texas Upholds Nexus Determination for Out-of-State Seller

The Texas Comptroller of Public Accounts upheld a nexus determination for an out-of-state seller making sales of licensed software into Texas.

Illinois Enacts Exemption for Property Sold to Active-Duty Armed Forces Members

Illinois has enacted a new exemption for tangible personal property that is sold to active-duty members of the Armed Forces. The exemption will go into effect on January 1, 2024.

New Short-Term Rental Permits Banned in New Orleans

New short-term rental (STR) permits in New Orleans, Louisiana, are banned for one year in areas of the city zoned for commercial use.

Dismissal of Illinois Qui Tam Claim Against UK Tailor Affirmed

A Chicago man’s qui tam action claim against a U.K. tailor was dismissed by a circuit court. The dismissal was recently affirmed by an Illinois Appellate Court.

Kansas No Longer Taxes Delivery Charges as of July 1, 2023

Kansas no longer imposes sales tax on delivery charges that are separately stated on the invoice, bill of sale, or other documentation given to the purchaser.

Ohio Adds Exemptions for Child and Baby Products Effective October 1, 2023

Ohio signed a new budget bill that includes several changes to the state\’s sales tax exemptions set to take effect from October 1, 2023.

Alabama Lowers Sales Tax Rate on Food Effective September 1, 2023

Effective September 1, 2023, Alabama’s state-level sales and use tax rate on food for home consumption decreases from 4% to 3%.

New Mexico Gross Receipts Tax Rate Drops to 4.875% on July 1, 2023

Effective July 1, 2023, New Mexico’s state-level gross receipts tax rate is reduced from 5% to 4.875%, enacted by Gov. Michelle Lujan Grisham.

Louisiana To Shift Oversight of Local Sales Tax Filing System

Effective January 1, 2024, Louisiana has enacted legislation that will shift oversight of the state’s uniform local sales and use tax return and remittance system from the Louisiana Department of Revenue (DOR) to the Louisiana Uniform Local Sales Tax Board (Board).

Lawn Care Company Denied Agricultural Sales and Use Tax Exemption in Michigan

The Michigan Supreme Court affirmed a lower court’s decision stating that a lawn care company is not entitled to the state’s agricultural exemption for property it uses to maintain lawns and landscaping.

Louisiana City Cannot Charge Franchise Fees on Streaming Services

The City of Kenner, Louisiana, cannot sue Netflix and Hulu for franchise fees for providing video content via the Internet.

Event Vendor Found Liable for Sales Tax in Mississippi

The Mississippi Supreme Court unanimously decided that Saltwater Sportsman Outfitters LLC is liable for $80,000 in additional sales tax.