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.
Effective January 1, 2025, Maine has updated the definitions in their sales tax code to allow businesses who purchase property that will be rented to customers to use an exemption certificate.
Nebraska has enacted legislation that creates a sales and use tax exemption for diapers, effective July 1, 2027.
In the case of North Carolina Department of Revenue v. Hayden Olivia Bridal, LLC, the North Carolina Department of Revenue (the \”DOR\”) filed a Petition for Judicial Review against Hayden Olivia Bridal, LLC (the \”Taxpayer\”) concerning a tax assessment.
Effective May 1, 2024, New Jersey has enacted a sales and use tax exemption for sales of materials, supplies, and services for certain affordable housing projects.
To clarify their position on orders fulfilled from warehouses as well as automated website orders, the Comptroller of Public Accounts for the state of Texas has added a section to the state\’s administrative rules defining which local tax is due on sales.
Arizona has enacted legislation that clarifies the timeliness of electronic tax payments.
Virginia has enacted legislation that extends the sunset date of the state’s annual sales tax holiday from July 1, 2025 to July 1, 2030.
The Louisiana Court of Appeals has denied Dillard\’s department store their appeal for a refund of sales tax remitted for purchases customers paid for with store credit cards.
In a General Information Letter dated March 4, 2024, the Colorado Department of Revenue provided clarification about the sales and use tax notice and reporting requirements for noncollecting retailers in Colorado.
A judge for the New York State Department of Tax Appeals denied a Time Warner subsidiary’s appeal of an audit ruling related to sales tax not collected on Federal fees charged to customers on bundles of interstate and in-state Voice over internet protocol (VoIP) services.
In a ruling filed on January 23, 2024, the Court of Appeals of the State of Washington denied an appeal of an audit assessment made by the Department of Revenue on sales made by two Amazon sellers between 2011 and 2018.
The Appellate Division, Third Department, of the state of New York has upheld a Tax Appeals Tribunal Ruling that a business that creates and provides recommendations based on data from advertising campaigns is providing taxable information services.
The Louisiana Board of Tax Appeals granted summary judgment in favor of the taxpayer in an order dated March 14, 2024, in the case DirecTV LLC v. City of Baton Rouge, Docket No. L01329.
Florida’s state sales tax rate on the renting, leasing, letting, or granting a license to use real property (“commercial rentals”) decreases from 4.5% to 2.0%.
Colorado will impose a $0.27 retail delivery fee beginning on July 1, 2022.
In a private letter ruling, the South Carolina Department of Revenue (DOR) stated that a company’s sales and rentals of digital textbooks are exempt from South Carolina sales and use tax.
Illinois provided guidance on whether non-residents may claim an out-of-state purchaser exemption from sales tax when purchasing a motor vehicle or trailer in Illinois that will be titled in another state.
Effective July 1, 2017, Indiana requires remote sellers to collect and remit sales tax on sales of tangible personal property, products transferred electronically, and services delivered in Indiana if gross revenue or number of sales exceed a certain threshold.
Indiana has enacted legislation with marketplace nexus provisions, effective July 1, 2019.
New Mexico has enacted legislation to provide new deductions from the state\’s Gross Receipts Tax for various industries, with most coming into effect July 1, 2024, and remaining in effect until July 1, 2034.
The governor of Oklahoma has signed a bill that will reduce the state sales tax rate on food and food ingredients to zero percent.
South Dakota has additionally clarified some of the language in the state\’s sales tax statutes, including adding \”any product transferred electronically\” to the list of items that a person defined as a seller could be selling, leasing, or renting in the state.
Effective July 1, 2024, Wyoming will no longer require 200 transactions as part of the state’s economic nexus threshold.
Florida began issuing Florida Tax Exempt Agricultural Materials (TEAM) Cards to farmers who applied to and were approved by the Florida Department of Revenue (DOR).