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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.

Missouri Issues Letter Ruling on Taxability of Items Purchased by Contractor

A Missouri Department of Revenue letter ruling explains when contractors owe sales or use tax on materials, supplies, and equipment they purchase for construction projects—and when they may buy items exempt for resale. Learn key rules and compliance tips for Missouri contractors.

Illinois Letter Ruling Explains Bone Growth Device as Fully Taxable

An Illinois Department of Revenue letter ruling finds that bone growth stimulation devices do not qualify as reduced-rate medical appliances and are instead taxed as general merchandise under Illinois sales tax rules.

Missouri Letter Ruling Clarifies Taxability of Contractor Purchased Items

Missouri’s Department of Revenue confirms that in a lump‑sum home addition contract, the contractor—not the homeowner—is the final user of materials. Sales tax is due on the contractor’s material purchases, which can be built into the contract price rather than separately taxed to the homeowner.

Direct Pay Permit Guidance Provided by Washington State

Washington’s Department of Revenue explains how approved businesses can use a direct pay permit to buy goods and taxable services without sales tax at checkout, then accrue and remit state and local tax directly—plus eligibility thresholds and recordkeeping requirements.

Illinois Clarifies When Payment Processors Are Not Responsible for Sales Tax

Illinois DOR explains that payment processors that only handle card payments and fraud checks—and don’t operate a marketplace—are not marketplace facilitators and don’t have to collect Illinois sales tax.

Chicago Rolls Out Social Media Amusement Tax

Chicago’s new Social Media Amusement Tax takes effect Jan. 1, 2026, charging social media platforms $0.50 per month per user over 100,000 Chicago users.

Chicago Shopping Bag Fee Increase

Chicago’s 2025 budget raises the checkout bag tax from $0.07 to $0.10 per paper or plastic bag, with $0.09 remitted to the City and $0.01 kept by retailers. Learn which bags are taxed, which are exempt, and how the increase affects compliance.

Chicago Personal Property Lease Transaction Tax Rate Increases in 2026

Effective January 1, 2026, Chicago’s Personal Property Lease Transaction Tax (including many cloud and software leases) increases from 11% to 15% under the 2026 Revenue Ordinance. Learn what this hike means for businesses and users of cloud services.

Alabama Reduced Machine Rate Applied to Propane and Oxygen Purchases to Process Metal

The Alabama Tax Tribunal ruled that propane and liquid oxygen used in cutting metal qualify for the reduced 1.5% machine rate under state sales and use tax laws. Get the key takeaways and what this means for manufacturers and processors.

Missouri Letter Ruling Discusses Taxability of Online Retailers Using In-State Fulfillment Centers

A Missouri Department of Revenue letter ruling clarifies the state’s sales/use tax treatment for online retailers that use in‑state fulfillment centers, including how shipping/handling and economic nexus apply to e‑commerce operations. Key takeaways for remote sellers and marketplace sellers.

Illinois Enacts Senate Bill 2111 to Explain Tax Rules

Illinois Gov. JB Pritzker signed Senate Bill 2111, reshaping transit governance and funding, including new sales‑tax revenue allocations and creation of the Northern Illinois Transit Authority. Learn key reforms and tax impacts for 2026 and beyond.

Missouri Cities Cannot Charge Streaming Services Video Service Provider Act Fees

Under newly clarified state law (2024), Missouri municipalities may no longer impose Video Service Provider (VSP) fees on streaming and internet‑delivered video services — ending local fees for platforms like Netflix, Hulu, and others.

Alabama Tax Tribunal Rules Private Waste Treatment Facility is Entitled to Exemptions

The Alabama Tax Tribunal ruled that certain private waste treatment facilities qualify for state sales and use tax exemptions under the pollution‑control exemption. Learn which equipment and purchases are now tax‑exempt and how facilities can claim the savings.

Local Tax Does Not Apply To Louisiana Pipe Manufacturer’s Sales

A recent ruling confirms that pipe manufacturers in Louisiana are exempt from local sales tax on qualifying manufacturing equipment and supplies under the state’s manufacturing exemption — reducing tax burden for producers.

Marketplace Sellers and Marketplace Facilitators in Utah

Under Utah law, marketplace facilitators that exceed $100,000 in annual Utah sales must collect and remit sales tax for third‑party sellers. Marketplace sellers remain liable only for non‑marketplace sales. Key thresholds, definitions, and compliance rules explained.

Maine Revised Instructional Bulletin No.54 on Resale Certificates

Maine’s updated Instructional Bulletin 54 clarifies when retailers qualify for a resale certificate, proper use of resale vs retailer certificates, and documentation requirements. What businesses need to know.

Rhode Island Enacts Changes to Taxation of Short-Term Lodging Rentals

Rhode Island will double its local hotel tax from 1% to 2% and impose a new 5% tax on whole‑home short‑term rentals starting January 1 2026. Short‑term rentals of 30 days or less will see total tax rates of up to 14%. Learn the details and how operators must prepare.

Washington Announces International Remote Seller Voluntary Disclosure Program

Washington is offering a temporary voluntary disclosure program for foreign remote sellers starting February 1 2026, allowing a limited look‑back period and reduced penalties if they register and pay previously unreported taxes.

Washington Clarifies Multiple Points of Use (MPU) Sales Tax Exemption for Software Maintenance Agreements

The Washington Department of Revenue has issued updated guidance on the application of the multiple points of use (MPU) sales tax exemption for software maintenance agreements.

Illinois Says Artificial Intelligence Services Are Not Subject to Sales Tax

The Illinois Department of Revenue (IDOR) confirms that artificial intelligence services delivered via the cloud—without transfer of tangible personal property—are not subject to Illinois sales tax. Learn what criteria apply and how providers can qualify.

Non-Returnable Wrapping Materials Subject to Indiana Sales Tax

The Indiana Department of Revenue has issued a ruling confirming that non‑returnable wrapping and packaging materials used in third‑party fulfillment do not qualify for the exemption and are taxable. Learn who is affected and how to comply.

Mississippi Expands Broadband Tax Incentives and Extends Sales Tax Exemption for High-Speed Equipment

Mississippi has broadened its broadband infrastructure incentives — revising definitions, extending the sales‑tax exemption for high‑speed deployment equipment, and updating investment thresholds. Learn the changes and how to qualify.

Tennessee Clarifies Taxability of Mobile Healthcare Subscriptions

Tennessee’s Department of Revenue has issued guidance clarifying when subscriptions to mobile healthcare services are subject to sales tax—explaining taxable components, exemptions, and filing requirements for providers.

New York Rules CBRE’s Facility Management Platform is Taxable Software

An NY Division of Tax Appeals ruling (DTA Nos. 829500/829501) finds CBRE’s bundled facility‑management service and web‑portal platform qualifies as pre‑written software and is fully subject to New York sales tax.