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.

California Issues Guidance on Taxability of Cryptocurrency

The California Department of Tax and Fee Administration (CDTFA) has issued guidance on the sales and use tax treatment of cryptocurrency.

Indiana DOR Revises Tax Guidance on Telecommunication Services

Indiana has released a new tax bulleting covering Telecommunications and Internet Services, effective immediately upon its publication in January 2023.

California Tax Relief for Taxpayers in Humboldt County Directly Affected Earthquake

In response to a magnitude 6.4 earthquake that struck Northern California on Dec 20,2022, the California Department of Tax and Fee Administration (CDTFA) has announced relief measures for taxpayers who were affected.

North Carolina Issues Guidance on Dry-Cleaning Solvent Tax

North Carolina imposes a privilege tax on dry-cleaning solvent retailers at a flat rate for each gallon of dry-cleaning solvent sold to a dry-cleaning facility. An excise tax is imposed on dry-cleaning solvent purchased for storage, use, or consumption by a dry-cleaning facility in North Carolina.

Pennsylvania Retirement of e-TIDES February 24,2023

e-TIDES, the online filing system for Pennsylvania taxpayers, will be officially retired as of February 24,2023.

Tax Deadlines Extended by IRS for California Storm Victims

The IRS announced households and businesses are eligible for extended deadlines in 20 California counties where a federal emergency has been declared.

Arizona DOR Releases TPT Guidance for Short Term Rentals

Income from short term rentals- stays of less than 30 days- is subject to the Arizona Transaction Privilege Tax (TPT) under Arizona Revised Statutes section 42-5070 and the Model City Tax Code -444 and -447.

Sweepstakes are Taxable Amusement Service, Texas Court Rules

After the state comptroller of public accounts audited Sidetracked Bar for periods between July 2011 and December 2017, the comptroller’s office assessed sales tax, penalties, and interest, totaling about $400,000, which Sidetracked paid under protest.

Landscaping Services Provided by Construction Company Subject to Tax in Arkansas

In a request for revision, the Arkansas commissioner of revenue affirmed an administrative law judge’s determination that a construction company was required to collect and remit sales tax on landscaping work that it performed.

CA Appeals Court Sides with CDTFA And Amazon in Sales Tax Issue

The California Court of Appeal, Second Appellate District released a decision on January 9,2023, confirming the CDTFA had the legal discretion to hold third party sellers responsible for the sales tax due on sales made through Amazon.

Tribal Owned Contractor Owes Arizona Transaction Privilege Tax

A three-judge panel for the Arizona Court of Appeals, Division One released a decision in the case Ute Mountain Ute Tribe v. Arizona Department of Revenue, upholding a state court decision that Weeminuche Construction Authority is responsible for remitting tax on contracting proceeds done on tribal lands.

Hardware Company Sales Not Wholesale, Mississippi Justices Told

After receiving an unfavorable lower court ruling, attorneys for Toolpushers Supply Company filed a brief claiming certain transactions should be exempted from tax and argued the purchasers had presented sales tax permits allowing for purchases without sales tax.

Alaska Announces Voluntary Disclosure Program

As of January 1, 2023, the ARSSTC will require remote sellers who reach the limit of $100,000 gross sales or 200 transactions statewide in Alaska to register to collect and remit sales tax in municipalities that are members of the ARSSTC.

Indiana Rules Rental of Some Equipment Used on Manufacturing/Production Site Tax Exempt

An Illinois based company that manufactures, assembles, and installs automated food processing, packaging, and conveyor equipment in food production lines at food processing plants successfully argued the rental of some equipment should be tax exempt in Indiana.

Arkansas Confirms Receipts from Sales of TPP Properly Subjected to Tax

The Arkansas Department of Finance and Administration Office of Hearings and Appeals (OHA) determined that the Department of Finance and Administration properly assessed tax on the sale of Tangible Personal Property by an Arkansas taxpayer.

South Carolina Public Utilities Cannot Claim Manufacturing Exemption

The South Carolina Department of Revenue put forth a ruling stating Public Utilities are ineligible for property tax exemptions on manufacturing properties, formally bringing the Department in line with legislation prohibiting the same.

Minnesota Releases Guidance about Services Necessary to Complete a Sale

The state of Minnesota has issued a revenue notice clarifying the department\’s position on services considered to be necessary to complete a sale, which are included in the sales price of a taxable transaction.

Virginia Denies Sales Tax Refund for Reagents used by Medical Diagnostic Testing Provider

The Virginia Department of Taxation (DOT) issued a letter ruling upholding the denial of a sales and use tax refund for chemical reagents used by a provider of medical diagnostic testing and analytical services.

California OTA Finds CEO Personally Liable for Sales Tax in Company’s Fraudulent Reporting

The California Office of Tax Appeals (OTA) released an opinion in Matter of Goldstein finding that J. Goldstein, CEO of National Imaging Company dba Reseda Mobil (NIC), was personally liable for the tax and penalties related to an audit.

North Carolina Supreme Court Rules Against Sales and Use Tax Distinction in Wisconsin Taxpayer’s Appeal

The Supreme Court of North Carolina ruled to uphold a sales tax assessment against a Wisconsin based printer, rejecting the taxpayer\’s argument that they could not be subject to sales tax under the U.S. Supreme Court decision McLeod v. J.E. Dilworth Co.

Ohio Expands Bad Debts to Include Tax Paid on Purchases made with Private Label Credit Cards

In line with current recommendations from the Counsel on State Taxation, the state of Ohio has updated its laws regarding bad debt deductions on sales tax returns to allow states to take a credit for tax remitted for a transaction made with a private label credit card that is in default.

New Jersey Court: Sales Tax Should Not Be Included in Sentencing

On December 21, 2022, the Superior Court of New Jersey, Appellate Decision determined that Eric Burnham, the defendant in the case New Jersey v. Burnham, was incorrectly charged due to the inclusion of sales tax while determining retail value of the stolen merchandise.

Hawaii Farm’s Guinea Grass is Subject to Tax

On November 28,2022, The Intermediate Court of Appeals of the State of Hawaii ruled that a farm producing guinea grass is subject to taxation and ineligible to claim exemption based on agricultural use.

Minnesota Tax Department Clarifies Inclusion of Services in Sales Tax

The Minnesota Tax Department has released Revenue Notice 22-04, which clarifies the taxability of services.