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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.

Streaming Platform Subject to Tax in Utah Due to Use of Bundled Transactions

An Administrative Law Judge for the Utah State Tax Commission released an order on Utah Appeal case 22-1274 upholding the decision of the Utah State Tax Business Taxes and Discovery Division of the Utah State Tax Commission (the Division) to charge a streaming platform (the Taxpayer) sales and use tax on their offerings.

Michigan’s Data Center Tax Reporting: What You Need to Know

Michigan\’s Treasury Department now requires data center operators claiming sales or use tax exemptions for equipment sales or purchases to report annually using Form 5726.

Washington Provides Guidance on Sales Tax Treatment of Crowdfunding

The Washington Department of Revenue (DOR) has provided comprehensive guidance on the sales tax implications associated with crowdfunding endeavors.

Tennessee Enacts New Sales Tax on Products Containing Hemp-Derived Cannabinoid

Effective July 1, 2023, Tennessee enacted a new 6% sales and use tax on the sales price of products that contain a hemp-derived cannabinoid sold at retail.

Washington Affirms Business & Occupation Tax Assessment Based On Business Activities of Out of State Taxpayer

Washington state appellate panel affirmed the Board of Tax Appeals’ final decision granting summary judgment finding in favor of the Washington Department of Revenue (DOR) for a Business and Occupation (B&O) tax assessment.

Colorado Issues Revised Sales and Use Tax Exemption Forms

Through House Bill 22-1039, the Colorado Department of Revenue (Department) has revised the listed sales and use tax exemption forms.

Ohio Provides Guidance for Taxpayer on Upcoming CAT Changes

Major changes to the reporting requirements for Ohio\’s Commercial Activities Tax come into effect, and the state has released additional guidance for taxpayers who are currently filing on how these changes impact them.

Tennessee Enacts Permanent Sales Tax Exemption for Firearm Safes and Safety Devices

Effective November 1, 2023, Tennessee has enacted a permanent sales and use tax exemption for firearm safes and safety devices.

Rhode Island Issues Guidance Regarding Discontinuation of Annual Sales Tax Reconciliation Return

The Rhode Island Department of Revenue (DOR) has issued an advisory informing sales tax permit holders that the Rhode Island Annual Sales and Use Tax Reconciliation Return (Form T-204R-Annual) will no longer be required for tax year 2023 and forward.

Ohio Tax Amnesty Program Ends Due to Fiscal Outlook

Ohio’s Office of Budget and Management determined they won\’t offer an amnesty program in 2023 due to Ohio’s current financial position.

Taxpayer Challenges Audit Assessment in Alabama

An audit assessment issued to an Alabama taxpayer was largely upheld upon challenge, with several adjustments being made upon review by the Alabama Tax Tribunal.

Digital Products Subject to Georgia Sales and Use Tax Effective January 1, 2024

Sales of specified digital products, other digital goods and digital codes sold to an end user in Georgia are subject to Georgia sales and use tax, provided that the end user receives or will receive the right of permanent use of such products, goods, or codes and the transaction is not conditioned upon continued payment by the end user.

Walmart Entity Qualifies for Resale Exemption in Missouri

The Supreme Court of Missouri found that Walmart Starco is exempt from use tax on its purchases of information technology equipment that it modified and subsequently sold to Walmart affiliates.

Sales Made to Canadian Residents but Delivered in Washington Are Subject to Tax

The Washington Department of Revenue (DOR) has issued guidance regarding the taxability of sales made to Canadian residents that are shipped to businesses in Washington for pickup by the Canadian residents.

South Dakota Releases Updated Fact Sheet for Sales Tax at Special Events

South Dakota has released an updated fact sheet with guidance for Special Event taxation through their website.

Wisconsin Increases Retailer’s Discount for Sales and Use Tax Returns

Wisconsin allows retailers to deduct a portion of the paid sales tax reported on a timely filed sales and use tax return, the retailer’s discount.

Apparel Company’s Method of Sourcing Income Outside of Ohio Rejected by Board of Tax Appeals

Ohio decided that an apparel company\’s appeal of their rejected claim for a refund of Commercial Activities Tax was denied on the basis of the company\’s methods to allocate sales to locations outside of Ohio.

California Amends Requirement for Use Tax Registration

California has amended its legislation regarding registration for purposes of the state’s use tax, effective date is January 1, 2024.

Alabama Tax Tribunal Upholds Fraud Penalties in Recordkeeping Case

The Alabama Tax Tribunal ruled against a taxpayer\’s audit appeal and affirmed both the Department of Revenue\’s assessment of additional tax due and the fraud penalty that was assessed on the basis of the taxpayer\’s underreporting of sales and inconsistent records.

Mississippi Supreme Court Rules Online Travel Companies are Not Liable for Hotel Tax

Mississippi released Priceline and their co-plaintiffs from hotel taxes previously levied by a lower court in Mississippi.

British Columbia Supreme Court Rules Amazon Web Services Not Subject to PST

Supreme Court of British Columbia ruled to Canadian social media company Hootsuite that certain Amazon Web Services (AWS) technical support and cloud products are not classified as software programs, and therefore are not subject to British Columbia’s 7% provincial sales tax.

T-Mobile Granted Sales Tax Refund on Sales of Electronically Delivered Software in Florida

An entity of T-Mobile was granted a $5.6 million Florida sales tax refund for sales of electronically delivered software to a T-Mobile affiliate.

Michigan Issues Bulletin Addressing Digital Goods

Michigan issued a revenue administrative bulletin (RAB 2023-10) addressing the taxation of computer software and digital products.

Louisiana Clarifies Treatment of Marketplace Sales for In-State Businesses

The Louisiana Sales and Use Tax Commission for Remote Sellers has issued an Information Bulletin to provide additional guidance to marketplace facilitators and sellers about each\’s responsibility for sales tax