Back to Sales Tax Updates

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.

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.

California Provides Guidance on Taxability of Cooking Classes

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.

Alabama Reduced Manufacturing Sales Tax Rate Denied for Wet Yard Equipment

Alabama’s Department of Revenue rejects the use of the 1.5% manufacturing tax rate for “wet‑yard” equipment used outdoors. Learn why the reduced rate doesn’t apply and how to determine eligibility for manufacturing exemptions.

Quality Control Equipment Qualifies for Texas Manufacturing Exemption

Texas exempts sales and use tax on machinery used for quality control in manufacturing operations—provided it is necessary and essential to test or inspect products destined for sale. Learn how to claim the exemption.

Illinois Announces New Amnesty Period for Taxpayers

Illinois has launched a new tax amnesty period for fall 2025, giving eligible taxpayers a chance to settle back taxes without penalties. Find out who qualifies and how to apply.

South Carolina Issues Letter Ruling on the Taxability of Scaffolding Used in Insulation Installation

In SC Private Letter Ruling PLR 25‑1, the Department finds that while scaffolding used by a contractor is taxable when rented, its use in insulation installation by the same contractor is not separately taxable. Explore the case and implications.

Bullion to be Subject to Washington Business & Occupation and Sales Tax

Beginning January 1, 2026, Washington will remove the exemption for precious metal and monetized bullion, making them subject to retail sales tax and B&O tax under the Retailing classification. See details, definitions, and compliance steps.

Washington Issues Guidance on Taxability of Temporary Staffing Services

Effective October 1, 2025, Washington will tax temporary staffing services under new rules. Interim guidance clarifies definitions, sourcing, and exclusions like hospital placements. | ESSB 5814 guidance

Illinois Expands Hotel Tax to Short-Term Rental Platforms

Effective July 1, 2025, Illinois will require hosting platforms for short‑term rentals that qualify as “re‑renters” to collect and remit Hotel Operators’ Occupation Tax. Get details on definitions, thresholds, and registration.

Arkansas Expands Sales and Use Tax Exemptions for Data Centers

Arkansas has broadened its data center tax incentive program effective October 1, 2025. The changes lower investment thresholds, expand eligible equipment/services, and create a “qualified large data center” category.

Texas Comptroller Denies Telecommunications Service Provider Refund Request for Certain Equipment

The Texas Comptroller has denied a telecommunications service provider’s refund claim on certain equipment, citing non‑qualifying use under the state’s sales tax refund statute. Learn why the request was rejected and what this means for providers.

Utah: Guidance for Telecommunications Service Providers Revised

The Utah State Tax Commission has updated its guidance for telecommunications service providers (Pub 62). Review the new sourcing, licensing, and municipal telecom tax rules effective for service delivery.

Arlington Heights Enacts Streaming Tax

Arlington Heights Village Board has approved a 5% tax on streaming entertainment subscriptions to help fund public services, while also extending the 1% grocery tax. Learn when it takes effect and who’s impacted.

Arlington Heights Votes to Continue 1% Grocery Tax

Arlington Heights village board voted to continue a 1% local grocery tax effective 2026, replacing the expiring statewide tax. Learn the community impact, revenue rationale, and new related streaming tax.

Colorado Confirms Sales Tax Exemption for Boxed and Bulked Bakery Items

A recent Colorado letter ruling (PLR 25‑004) confirms that multi‑packs, individual boxed bakery items, and bulk bakery orders are exempt from state sales tax when sold for home consumption. Learn the details and qualifying conditions.

Indiana Letter Ruling Rules Construction Company’s Software Purchases Tax-Exempt

A new Indiana letter ruling determines that a construction company’s software purchases are exempt from sales tax under state law. Understand the ruling’s criteria, implications, and how others may qualify.

Colorado Private Letter Ruling Defines Marketplace Facilitator’s Role in Firearms Sales

A Colorado private letter ruling (PLR 25‑002) finds that marketplace facilitators are not liable for the state’s firearms and ammunition excise tax. Learn how this impacts sales platforms and sellers.

Pennsylvania: City of Philadelphia Ordinance Lowers Business Income and Receipts Tax Rates and Ends $100K Exclusion

Philadelphia’s new ordinance (Bill No. 250199) phases in lower Business Income & Receipts Tax (BIRT) rates and eliminates the $100,000 gross receipts exclusion starting for tax year 2025 (returns in 2026). Here’s what businesses need to know.

Washington’s Senate Bill 5814 Expands Sales Tax to Digital Services, Sparking Legal Concerns

Even though Senate Bill 5814 was just signed on May 20, 2025, by the Governor of Washington, legal challenges are already anticipated due to the controversial way the legislature singles out certain advertising services that are digitally or electronically delivered. The…

Washington Clarifies Taxability of Custom Website Development Services

Washington\’s interim guidance clarifies that custom website development, consulting, and training are subject to sales tax under ESSB 5814.