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.
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’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.
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 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’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’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.
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.
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.
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 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.
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.
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.
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.
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’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 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 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.
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.
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.
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 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’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.
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.
California’s CDTFA has released a guide explaining when cooking classes are taxable—distinguishing instructor‑led instruction (nontaxable service) from meals sold in class (taxable). Find key take‑aways for providers.