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