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.

New York Rules Federal Universal Service Fees Taxable on Bundled Wireless Plans

The New York Division of Tax Appeals has ruled that Federal Universal Service Fund (FUSF) fees passed through in bundled mobile wireless plans are subject to NY state sales tax. Learn how this impacts wireless carriers and consumers.

Mississippi Supreme Court Upholds Lower Court Rulings Regarding Sales Tax Audit

The Mississippi Supreme Court has upheld a lower court ruling in a sales tax audit dispute, clarifying how resale certificates and “good faith” requirements are evaluated. Key takeaways for businesses under audit.

Kansas Offers Data Center Tax Exemption to Attract High-Tech Investment

Beginning July 1, 2025, Kansas will offer a full state and local sales/use tax exemption for qualified data center construction, equipment, and labor under Senate Bill 98. Discover eligibility criteria and economic incentives for investors.

Illinois Clarifies Sales Tax Rules for Assist Crane Rentals

Illinois DOR rules that assist crane rentals for erecting or dismantling tower cranes are not retail leases if the crane remains under lessor control. Here’s what lessors & lessees need to know.

Colorado Eliminates State Sales Tax Vendor Fee Effective January 1, 2026

Colorado will eliminate the state sales tax vendor fee, allowing retailers to retain a small collection allowance, starting January 1, 2026. Read what this means for retailers and state revenue.

Colorado Releases Letter Ruling Addressing Third-Party Shipping

Colorado’s Department of Revenue ruled that if the buyer arranges third-party shipping from the seller’s location, the sale is sourced to the buyer’s known address—not the seller’s—impacting sales tax collection.

Artificial Intelligence Chatbot Subscription Not Subject to Indiana Sales Tax

Indiana’s Department of Revenue ruled that generative AI chatbot subscriptions accessed via website or app—without software delivery—are not subject to sales tax, aligning with existing SaaS treatment.

Sweeping Sales Tax Changes Enacted in Louisiana

Louisiana has significantly reformed its sales tax laws effective January 1, 2025. Expect a rate increase to 5%, an expanded tax base covering digital products and telecom services, and changes to vendor compensation and exemptions.

Missouri Confirms Sales Tax Rules for Out-of-State Roofing Contractors

A Missouri DOR ruling confirms that out-of-state roofing contractors must pay Missouri sales tax on materials and equipment used in the state, even if they don\’t charge customers. Learn who qualifies and what to report.

Georgia Issues Guidance on Acceptable Forms of E-Signatures

Georgia’s Department of Revenue now accepts electronic signatures and remote notarizations on certain tax documents, following Policy Bulletin ADMIN 2025‑03 effective May 28, 2025. Find out which forms qualify and how to comply.

Florida Repeals Sales Tax on Commercial Rentals, Effective October 1, 2025

Florida has fully repealed state and local sales tax on commercial real estate rentals beginning October 1, 2025. Learn what property types are affected, transitional rules, and next steps for landlords and tenants.

Maryland Comptroller Releases Updated Information on Digital Advertising Gross Receipts Tax

Maryland has updated its Digital Advertising Gross Receipts (DAGR) tax guidance, including quarterly estimated payments, appeal rules, and electronic filing requirements beginning January 2026. See what providers need to know.

Missouri Enacts Sales and Use Tax Exemption for Specified Broadband Equipment

Effective January 1, 2026, Missouri will exempt broadband providers from state and local sales/use tax on qualifying equipment like routers and cables. Learn which items qualify and how to comply.

Washington Department of Revenue Determines Substantial Nexus for Out-of-State Company Based on Local Contractor Activities

Washington\’s Department of Revenue ruled that an out-of-state company established substantial nexus through in‑state contractor activity. Discover which actions triggered liability and how this ruling impacts remote businesses.

Minnesota Requires New Accelerated Sales Tax Payments for Some Businesses

Minnesota now requires accelerated sales tax payments from some businesses meeting specific thresholds. Learn who’s affected, what’s changing, and when it starts.

Missouri Enacts Sales and Use Tax Exemption for Hygiene Products

Missouri now exempts hygiene products like diapers and feminine hygiene items from sales and use tax. Learn what’s covered, when it takes effect, and who benefits.

Colorado Retail Delivery Fee Decrease Effective July 2025

Each year the Colorado Department of Revenue assesses the Retail Delivery Fee (RDF) and posts the rate for the upcoming fiscal year. For the July 2025- June 2026 period, the rate has decreased to $0.28. Colorado taxpayers will need to…

Maine Redefines Taxable Digital Services to Include Digital Audiovisual and Audio Content

Maine has updated its sales tax laws to include digital audiovisual and audio content as taxable services. Learn how this impacts streaming and digital content providers.

Texas Supreme Court Affirms Sales Tax Liability for Private Correctional Contractor

The Texas Supreme Court has affirmed that a private correctional contractor is liable for sales tax. Learn the case details and its implications for government contractors.

Louisiana Adds Drop Shipment Definition and Sourcing Rules

Louisiana has added a legal definition for drop shipments and clarified sourcing rules affecting multistate sellers. Learn how these changes impact sales tax compliance.

New Jersey Launches Mediation Pilot Program for Business Tax Disputes

New Jersey has introduced a mediation pilot program to help businesses resolve tax disputes more efficiently. Learn how the process works and who qualifies.

Washington State Announces Limited Time Voluntary Disclosure Program Expansion

Washington State has temporarily expanded its Voluntary Disclosure Program, offering relief for eligible businesses. Learn who qualifies and how to apply before the deadline.

Alabama Authorizes Local Governments to Opt Out of New Sales Tax Exemptions

A new Alabama law lets local governments opt out of certain state sales tax exemptions. Learn how this affects exemption consistency and local sales tax compliance.

California to End Bad Debt Deductions for Lenders and Retailer Affiliates in 2025

Starting January 1, 2025, California will disallow bad debt deductions for third-party lenders and retailer affiliates. Learn how this change affects sales tax reporting and compliance.