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.

Marketplace Sellers Can Claim Sales Tax Credits Under Illinois Law

Certain marketplace facilitators can claim credits for retailers’ occupation tax paid on 2020 sales for which use tax was also remitted by a marketplace facilitator.

Alaska Introduces Bill That Would Create State Sales Tax, Adopt Streamlined Sales Tax

Alaska would adopt a new two percent state sales and use tax and enter the Streamlined Sales and Use Tax Agreement under a new bill introduced in the Alaska House of Representatives on August 30, 2021.

Missouri Taxpayer with Civic Exemption Status Denied “Pass-Through” Exemption for Construction Project

A taxpayer with civic exemption status attempted to make the status “pass-through” to their contractor and subcontractors when purchasing construction materials for a new project.

The Oklahoma Tax Commission Revised Sales and Use Tax Rules on Multi-Level Sales

Oklahoma’s sales and use tax rule change on multi-level sales details that if the products are not sold from the multi-level vendor in their original form and packaging to the distributor, then the distributor is required to collect tax on the sales price of the final product that is sold to the consumer.

Hawaii Clarifies Sales Tax Treatment of Software

The Hawaii Department of Taxation issued a release to clarify the treatment of sales of software with regards to their general excise tax (GET).

Washington Provides Clarity on Application of Sales and B&O Tax to Online Classes

The state of Washington has published an article clarifying the application of sales and business and occupational taxes to providers of online classes.

South Carolina Extends COVID-19 Related Remote Employee Tax Relief

South Carolina extended the COVID-19 tax relief with regards to the nexus for income and sales tax created by employees that are temporarily working in another jurisdiction due to COVID-19.

Ride Share Vehicles in Washington Exempt from Sales Tax

Beginning September 1, 2021, vehicles purchased for certain ride-share programs will qualify for sales and use tax exemption.

Kentucky Enacts Manufacturing Electricity Exemption for Mining of Cryptocurrency

On July 1, 2021, the state of Kentucky enacted a new sales tax exemption for electricity that is used or consumed in the commercial mining of cryptocurrency.

Illinois Removes Trade In Value from Selling Price Definition

As of 2022, the full value of trade-ins will be excluded from the definition of sales price.

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.

Connecticut Provides Sales Tax Relief for Meal Sellers

Connecticut has enacted legislation allowing sellers of meals to retain the sales tax they collect on meal sales for a specified period.

New Jersey to End Waiver of Sales Tax Nexus for Remote Employees Effective October 1, 2021

The state of New Jersey has announced their waiver of sales tax nexus requirements for companies with employees working remotely in the state due to the COVID-19 pandemic will come to an end

Cities File Suit Against Texas Comptroller Over Sourcing Rule Change

The City of Round Rock, Texas has filed a petition for declaratory judgment against the Texas Comptroller over regulatory changes to local tax sourcing rules that will come into effect on October 1, 2021.

Washington State Rules Against For-Profit College in Business and Occupation Tax Ruling

The Washington Department of Revenue Administrative Review and Hearings Division has ruled against a for-profit college\’s appeal of their Business and Occupation tax assessment on the basis that the college did not meet the state definition of an educational institution.

Michigan Appeals Court Upholds Ruling that Direct Mail Advertising Mailed to Customers in State Not Subject to Use Tax

The Michigan Court of Appeals handed down a ruling on July 8, 2021 affirming a lower court decision that use tax is not due by a retailer on advertising materials shipped to Michigan customers by an out of state direct mail company.

West Virginia Provides Information on Sales Tax for Sales of Small Firearms and Ammunition

Beginning July 1, 2021, West Virginia’s small firearms sales tax exemption will not require an exemption certificate for the sale of qualifying small firearms and ammunition.

British Columbia Adopts Provincial Sales Tax Requirements for Canadian Remote Sales and Foreign Software

A series of rules originally passed by the parliament of British Columbia in February 2020 that imposed Provincial Sales Tax collection requirements on businesses located outside of the province have come into effect as of April 1, 2021.

Arizona Formally Codifies Exemptions for Indian Tribes

The State of Arizona passed a bill on July 10, 2021 that formalizes the sourcing rules and exemptions for transaction privilege tax for Indian tribes, tribally owned businesses, and affiliated Indians.

Maine and Texas Governors Sign Sales Tax Exemptions for Firearm Safety

Bills in Maine and Texas have been signed by their state’s respective governors exempting sales of firearm lock boxes, safes, and safety equipment from state sales tax.

Louisiana Will Exempt Diapers and Feminine Hygiene Products

The state of Louisiana passed a bill on June 23, 2021 that will exempt sales of diapers and feminine hygiene products from Louisiana sales tax effective July 1, 2022.

Arizona Retail Definition and Exemptions Standardized Across All Municipalities as of June 30, 2021

The provisions of House Bill 2757, signed by Arizona Governor Doug Ducey on May 31, 2019, that allowed municipalities to delay adopting sections of the state\’s standardized definition of taxable retail sales have expired.

Tennessee One Year Sales Tax Holiday on Gun Safety Devices Begins

Effective from July 1, 2021 until June 30, 2022, Tennessee will have a sales tax holiday exempting retail sales of gun safes and gun safety devices from tax.

Maine Passes Act Removing Transaction Count From Economic Nexus Threshold

Maine Governor Janet Mills signed a bill on June 11, 2021 that will remove the transaction count threshold from the state\’s economic nexus rules for remote sellers effective January 1, 2022.