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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.

Wyoming Supreme Court Rejects Sales Tax Exemption for Oil & Gas Company

The Wyoming Supreme Court reversed a refund decision and held that electricity used in oilfield operations does not qualify for the “transportation business” sales tax exemption. Key takeaways for oil & gas taxpayers seeking sales/use tax refunds on utilities and field equipment.

New York Court Clarifies Sales Tax Treatment of Vehicle Leases with a Terminal Rental Adjustment Clause

A New York Tax Appeals Tribunal decision explains that sales tax on motor vehicle leases is due at lease inception (as a transaction tax), and lessors generally can’t claim sales tax credits for end-of-lease TRAC adjustments and lessee refunds. Key takeaways for fleet lessors and leasing companies.

Illinois Denies Manufacturing Exemption for Renewable Natural Gas Facility

An Illinois private letter ruling (ST 25-0008-PLR) concludes that equipment used to clean and upgrade landfill gas into pipeline-quality renewable natural gas does not qualify for the manufacturing machinery and equipment exemption because it is treated as taxable gas treatment delivered through pipelines.

Self-Storage Rentals and Leases Are Taxable as Services in Washington, Effective April 1, 2026

Beginning April 1, 2026, Washington will treat self-service storage unit rentals as a taxable service for B&O tax (Service & Other Activities). The Department also clarifies that businesses generally do not collect retail sales tax on the storage rental/lease charge—plus how related retail sales (boxes, locks, etc.) are taxed.

New York Authorizes Electronic Signatures for Power of Attorney Representatives

New York now allows electronic signatures on tax powers of attorney, making it easier for taxpayers to authorize representation and manage audits.

California’s New Battery Recycling Law Takes Effect January 1, 2026

Beginning January 1, 2026, California will impose a point‑of‑sale fee on covered battery‑embedded products under Senate Bill 1215. Retailers and manufacturers must register, collect, and remit the new Covered Battery‑Embedded (CBE) Waste Recycling Fee. Learn what qualifies and how to comply.

North Carolina Issues Guidance on Tax Impact of Rounding Cash Transactions Due to Suspension of Penny Production

North Carolina’s Department of Revenue issues guidance on how retailers should apply sales tax rounding rules for cash transactions following the suspension of penny production, including when and how to round totals to the nearest five cents.

Maine Revises Sales and Use Tax Guide and Bulletin on Exempt Organizations and Government Agencies

Maine Revenue Services has updated the Sales & Use Tax Guide and Instructional Bulletin No. 36 on exempt organizations and government agencies, clarifying tax exemptions and compliance requirements for nonprofits, schools, hospitals, and government entities.

Food and Beverage Sales at Career Center Are Exempt from Missouri Sales Tax

A Missouri letter ruling confirms that food and beverage sales at a vocational career center are exempt from state sales tax when sold by or for the benefit of the nonprofit educational institution. Learn the criteria and key takeaways for similar organizations.

New Jersey Issues Guidance on Taxability of Tariff Mark Ups

The New Jersey Division of Taxation clarifies that when sellers pass federal tariff costs on to customers, those tariff markups are included in the taxable sales price for New Jersey sales tax, even if shown separately on invoices.

New Hampshire Holds Tax Amnesty Program for Multiple Tax Types

New Hampshire’s 2025–2026 tax amnesty program offers relief on penalties and 50% interest for unpaid taxes. Learn eligibility, deadlines, and how to participate.

Nevada Changes Due Date for Sales and Use Tax Returns

Nevada has changed the due date for sales and use tax returns, impacting when businesses must file and remit tax to avoid penalties and interest. Learn the new deadline, when it applies, and what taxpayers should do to stay compliant.

New York Rules SaaS Vendor Management System Fees as Taxable Software Licensing

The New York Tax Appeals Tribunal has upheld an earlier ruling by an administrative law judge (ALJ) that fees charged by a taxpayer for their vendor management system (VMS), provided through a software-as-a-service (SaaS) model, are subject to taxation as software licensing.

Washington Updates Medical Devices Sales Tax Rule

Washington has updated its sales tax rule for medical devices, clarifying which items qualify as exempt medical equipment and supplies and when sales tax applies. Learn what changed and how the revisions affect healthcare providers, manufacturers, and sellers.

Complimentary Hotel Rooms are Exempt from Pennsylvania Room Rental Tax

Pennsylvania has clarified that complimentary hotel rooms provided at no charge are not subject to the state’s hotel room rental tax. Learn when the exemption applies and what it means for hotels, resorts, and lodging operators.

Kentucky Clarifies Sales Tax Treatment of AI-Powered Software as Taxable

Kentucky has clarified that AI-powered software is taxable under its sales tax laws, treating AI functionality as part of taxable prewritten or cloud-based software. Learn what this means for SaaS providers, software users, and compliance planning.

Ohio Revises Sales and Use Tax Regulations for Delivery Network Services

Ohio has updated its sales and use tax regulations to clarify the tax treatment of delivery network services, including the roles of delivery providers, retailers, and facilitators. Learn what changed, who must collect tax, and key compliance considerations.

Missouri Court Blocks Municipal Tax Collection Over Process Errors

A Missouri court ruled that municipalities cannot collect certain local taxes after failing to follow required statutory procedures. The decision highlights compliance risks for cities and potential refund or challenge opportunities for taxpayers.

Washington provides interim guidance explaining new tax treatment for live presentations starting October 1, 2025

Washington’s Department of Revenue issued interim guidance explaining how live presentations will be taxed beginning October 1, 2025, including distinctions between taxable digital automated services and nontaxable live events. Learn who’s impacted and how to prepare.

Texas Issues Guidance on Warranty Claim Reimbursement Services

The Texas Comptroller released guidance clarifying the sales and use tax treatment of warranty claim reimbursement services, including when reimbursements and related service fees are taxable. Learn how the guidance affects warranty administrators, manufacturers, and service providers.

Ohio Board Voids Use Tax Assessment Against MGQ Terminal on Manufacturing Exemption Grounds

The Ohio Board of Tax Appeals ruled that equipment used by a river terminal qualified for the manufacturing exemption, voiding a use tax assessment. The decision provides important guidance on how Ohio applies manufacturing exemptions to processing and material-handling activities.

Arizona Court of Appeals Case Clarifies “Processing” in Manufacturing Exemption

An Arizona Court of Appeals decision clarifies what activities qualify as “processing” under the manufacturing exemption, offering important guidance for manufacturers seeking sales and use tax relief on equipment and materials.

Court Ruling Signals Bigger Compliance Risks for Online Sellers

A recent court ruling highlights growing sales tax compliance exposure for online sellers—especially around nexus, marketplace collection rules, and inaccurate exemption or sourcing practices. Learn what changed and how e-commerce businesses can reduce audit and penalty risk.

IL Letter Ruling Discusses Taxation of Hormone and Other Wellness Services and Products

An Illinois Department of Revenue letter ruling explains when charges for hormone therapy, wellness programs, and related products are subject to sales tax as tangible personal property and when fees may be treated as nontaxable professional services. Learn key rules for clinics and wellness providers.