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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.

Utah Approves Sales Tax Breaks to Support Public Transit Construction

Utah provides a sales tax exemption for construction materials sold to public transit districts and, in qualifying cases, to subcontractors when the property is clearly identified and becomes part of transit-owned real property. Learn what qualifies and how the rules support public transit construction projects.

Missouri Issues Letter Ruling on Taxability of Items Purchased by Contractor

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.

Missouri Letter Ruling Clarifies Taxability of Contractor Purchased Items

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.

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.

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.

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.

Virginia Company is a Dual Operator; Can Receive One Time Tax Credit

The Virginia Tax Commission released a letter ruling regarding a flooring company that incorrectly classified itself as a retailer while operating as both a retailer and contactor under Virginia law.

Washington Updates Rules on Reseller Permits for Contractors

The Washington Department of Revenue has amended the definition of “contractor” in the application process and eligibility requirements for reseller permits.

South Dakota Requires Use Tax from Infrastructure Management Company

In a recent ruling by the South Dakota Supreme Court, an infrastructure management company was found liable for over $75,000 in unpaid use taxes and interest.

New Jersey Enacts Exemption for Sales of Items and Services Used in Certain Affordable Housing Projects

Effective May 1, 2024, New Jersey has enacted a sales and use tax exemption for sales of materials, supplies, and services for certain affordable housing projects.

Alabama Updates Rules for Contractors and Subcontractors

Effective February 12, 2024, under the amended Reg. 810-6-3-.77, Alabama contractors and subcontractors saw changes to their requirements.

Tennessee Offers Tax Relief for December 2023 Storm Victims

The Tennessee Department of Revenue (DOR) is offering tax relief to residents affected by the severe weather in Tennessee on December 9, 2023.

Nebraska Expands Sales Tax Exemptions: Supporting Non-Profits, Agriculture, and Construction

Overall, these changes aim to support specific sectors of the economy, reduce financial burdens on certain organizations, and streamline processes for construction projects.

Indiana Clarifies Pass-Through Exemptions for Government Construction Contractors

In their response to a request for guidance, Indiana has issued a ruling discussing the eligibility for construction contractors to use the tax-exempt status of their customers when renting or purchasing equipment.

Federal Contractor Required to Pay Washington Use Tax on Design and Engineering Costs Associated with Government Contract

The Court of Appeals of Washington determined that Alstom Power Inc. was required to pay Washington use tax for a turbine rehabilitation project.

Grass Seed and Erosion Control Blankets Exempt as Construction and Building Materials in Colorado

The Colorado Department of Revenue (DOR) issued a private letter ruling discussing the taxability of sales of grass seed, erosion control blankets and fertilizer to a construction contractor.

Arkansas Denies Refund Claim for Reimbursement of Material Cost to Construction Contractor

The Arkansas Department of Finance and Administration denied a refund claim filed by a taxpayer who had accrued consumer\’s use tax on payments to their construction contractors to reimburse them for materials.

Landscaping Services Provided by Construction Company Subject to Tax in Arkansas

In a request for revision, the Arkansas commissioner of revenue affirmed an administrative law judge’s determination that a construction company was required to collect and remit sales tax on landscaping work that it performed.

Idaho Issues New Exemption Certificate for Real Property Contractors

Idaho has issued a new sales tax exemption certificate for real property contractors.

New York Appeals Court ruling on sales tax refund for concrete offers reminder of the critical role invoicing plays in sales tax

A July 2022 slip opinion ruling by New York Appellate Division’s Third Department against a company claiming eligibility for sales tax refunds on several purchases of concrete is a reminder that companies can save vendors money simply by the way they package goods for sale.

Colorado Use Tax Exemption for Construction Materials Used for Public Schools

Colorado enacted a use tax exemption for construction materials used to build and renovate public schools across the state, including home rule cities.

Utah Creates Sales Tax Exemption for Electrical Facilities

Utah created a sales and use tax exemption for charges related to the construction, operation, maintenance, repair, or replacement of “distribution electrical cooperative or a wholesale electrical cooperative” facilities.

Michigan Simplifies Taxation of Heavy Equipment Rentals

Michigan simplified their taxation of heavy equipment rentals by exempting these rentals from personal property tax and imposing a 2 percent excise tax on rental transactions of heavy equipment.

Missouri Provides Guidance on Taxability of Plumbing and HVAC Services

The Missouri Department of Revenue issued a letter ruling regarding the tax requirements for an HVAC and plumbing company located in Arkansas.