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.
Indiana\’s Department of Revenue rules that chef attire is not exempt from sales tax. Learn how this impacts restaurants, uniform policies, and compliance.
Utah enacts a new sales tax exemption for facilities that manufacture qualifying energy storage devices or equipment. Learn who qualifies and how to claim it.
A Kentucky court ruling explains sales tax exemptions for small food manufacturers. Learn how this decision impacts businesses and tax compliance in the state.
Wyoming has enacted legislation that extends the sunset date for the state’s manufacturing sales and use tax exemption.
The Missouri Department of Revenue (DOR) issued a letter ruling stating that the state’s manufacturing exemption for sales and use tax does not apply to a company that performs custom machining and laser services for parts and materials.
The Texas Comptroller has issued a private letter ruling discussing the taxability of disposable collars for dessert cups.
A taxpayer in Virginia was entitled to a refund for paid sales and use tax on testing equipment.
A taxpayer protested Washington State auditors’ conclusions that a facility operated by the taxpayer was not entitled to a manufacturing exemption for equipment used at a facility.
The West Virginia Tax Department has issued guidance on the sales and use tax implications for samples distributed by manufacturers and retailers.
The Washington Department of Revenue has issued guidance regarding the tax treatment of items that are manufactured for a business’s own commercial or industrial use.
On September 6, 2023, the Tennessee Appeals Court at Nashville issued a majority ruling upholding the Chancery Court’s decision in the case Alsco, Inc. v. Tennessee Department of Revenue, number M2022-01019-COA-R3-CV.
In a private letter ruling issued on June 2, 2023, the Illinois Department of Revenue ruled that an Illinois company’s machinery was exempt from sales tax due to its role in preserving and maintaining food to be sold.
The Indiana Department of Revenue (DOR) determined that certain items purchased by an auto parts manufacturer qualified for the state’s manufacturing exemption.
Indiana has issued a revenue ruling stating that equipment used in a climate-controlled clean room qualified for the state’s manufacturing exemption.
Effective July 1, 2023, Tennessee has enacted legislation that amends the state’s definition of “industrial machinery” for purposes of the state’s industrial machinery exemption.
In a memo released in the wake of its success in a court case addressing the issue earlier this year, Texas elaborated on its reasons for denying companies performing refurbishment services a manufacturing exemption on wrapping and packaging items.
The Supreme Court of Missouri has sided with the Department of Revenue and ruled that CarFax cannot claim manufacturing exemptions for their use of servers to generate vehicle information reports.
Machinery used in or consumed as an integral or essential part of an integrated production operation is not subject to sales and use tax in the State of Vermont as of July 2022 following an amendment expanding the Manufacturing Tax Exemption.
In a decision impacting manufacturers in North Carolina, the state’s Department of Revenue, Sales and Use Tax Division explained in a private letter ruling request that the purchasers of machinery and equipment for a manufacturing plant are not exempt from state sales and use tax.
An Arkansas taxpayer protested the denials of sales tax refund claims resulting from audits.
The New Mexico Department of Revenue provided a new law allowing receipts from selling certain professional services to be deducted from New Mexico gross receipts for taxing purposes.
A Washington hardware provider was denied the state’s machine and equipment (M&E) sales tax exemption for their purchases of plastic injection molds used to house their hardware system.
An Alabama taxpayer that manufactures rockets requested a partial sales tax refund for tax paid on helium and nitrogen.
On July 1, 2021, the state of Kentucky enacted a new sales tax exemption for electricity that is used or consumed in the commercial mining of cryptocurrency.