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 September 1, 2023, Alabama’s state-level sales and use tax rate on food for home consumption decreases from 4% to 3%.
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.
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).
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.
The City of Kenner, Louisiana, cannot sue Netflix and Hulu for franchise fees for providing video content via the Internet.
The Mississippi Supreme Court unanimously decided that Saltwater Sportsman Outfitters LLC is liable for $80,000 in additional sales tax.
Effective July 1, 2023, Virginia has enacted legislation that creates a sales and use tax exemption for amounts separately charged for labor rendered in connection with diagnostic work for automotive repair and emergency roadside service for motor vehicles, regardless of whether there is a sale of a repair or replacement part or a shop supply charge.
Effective July 1, 2024, Maryland has enacted legislation that imposes the state’s 6% sales tax on rentals of home amenities such as swimming pools and event spaces.
The Washington Department of Revenue has released an Excise Tax Advisory providing further detail about the duration of the state\’s data center sales and use tax exemptions.
In March 2023, Keystone voted to become a Home Rule Town with a Charter and to elect nine Charter Commission Members who draft the Charter.
The Indiana Department of Revenue (DOR) determined that certain items purchased by an auto parts manufacturer qualified for the state’s manufacturing exemption.
The Tennessee Department of Revenue ruled that membership fees charged from a home exercise equipment company are subject to the state’s sales and use tax.
Oklahoma H.B. 2335 shifts the sales tax burden from marketplace facilitators to marketplace seller’s for hotels and motels with more than 12 rooms.
Effective October 1, 2023, Texas has amended the definition of “Information service” for purposes of sales and use tax to exclude the furnishing of an academic transcript.
Indiana has issued a revenue ruling stating that equipment used in a climate-controlled clean room qualified for the state’s manufacturing exemption.
Effective August 1, 2023, Louisiana will no longer have 200 transactions as part of the state\’s economic nexus threshold.
On May 24, 2023, Minnesota Gov. Tim Walz signed legislation which establishes a retail delivery fee (RDF) for the state of Minnesota.
The Missouri Department of Revenue issued a letter ruling clarifying which party in a drop shipping transaction is ultimately liable for collecting tax from Missouri customers.
Indiana has enacted legislation that makes changes to the state’s sales tax exemption for sales of tangible personal property by nonprofit organizations.
The Indiana Department of Revenue (DOR) denied a taxpayer’s refund claim for sales tax paid on the purchase of a swim spa, which the taxpayer claimed is used for medical treatment.
Effective July 1, 2023, Washington has enacted a sales and use tax exemption for telecommunications infrastructure projects involving a federally recognized Indian tribe.
On May 4, 2023, Colorado Governor Jared Polis signed legislation that creates an exemption from the state’s 27-cent Retail Delivery Fee (RDF) for businesses with retail sales of $500,000 or less in the prior calendar year.
The California Office of Tax Appeals (OTA) determined that the owner of a California restaurant owes sales tax on orders made through delivery websites.
The California Department of Tax and Fee Administration (CDTFA) has issued guidance to registered fuel retailers who may not have properly claimed the California partial sales and use tax exemption for diesel fuel.