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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 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.

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.