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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 Clarifies Sales Tax Treatment for Ice Sold in Vending Machines

A Missouri Department of Revenue letter ruling explains how bulk and bagged ice sold through vending machines is taxed, including the special vending-machine sales tax basis and sourcing rules. Learn what ice sellers and vending operators need to know.

North Carolina Issues Guidance on Tax Impact of Rounding Cash Transactions Due to Suspension of Penny Production

North Carolina’s Department of Revenue issues guidance on how retailers should apply sales tax rounding rules for cash transactions following the suspension of penny production, including when and how to round totals to the nearest five cents.

New Jersey Issues Guidance on Taxability of Tariff Mark Ups

The New Jersey Division of Taxation clarifies that when sellers pass federal tariff costs on to customers, those tariff markups are included in the taxable sales price for New Jersey sales tax, even if shown separately on invoices.

Ohio Revises Sales and Use Tax Regulations for Delivery Network Services

Ohio has updated its sales and use tax regulations to clarify the tax treatment of delivery network services, including the roles of delivery providers, retailers, and facilitators. Learn what changed, who must collect tax, and key compliance considerations.

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.

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.

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.

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…

South Carolina Clarifies Sales Tax Obligations for Withdrawals from Inventory

South Carolina has clarified when sales tax applies to inventory withdrawals. Understand the implications for internal use and retail compliance procedures.

Alabama Passes Sales Tax Exemption for Menstrual and Maternity Products

Alabama now exempts menstrual and maternity products from sales tax. Learn which items qualify, when the change takes effect, and what it means for buyers.

Washington Updates Reusable Bag Fee Requirements for Retailers

To reduce single-use plastics and promote sustainability, Washington requires retailers to follow specific bag fee guidelines. From October 1, 2021, through December 31, 2025 retailers must charge 8 cents per reusable bag. Beginning on January 1, 2026, the fee for…

New York Tax Tribunal Confirms Sales Tax is due on Party Platters

A New York Tax Tribunal ruling confirms that party platters are subject to sales tax. Learn how this impacts food sellers and catering businesses in the state.

Ohio House Bill 315 Brings Key Changes to Delivery Network Tax Regulations

Ohio’s newly enacted House Bill 315 (H.B. 315) introduces significant changes to how delivery network services collect sales and use tax.

Florida Sales Tax Dispute on Walmart Delivery Fees Moves to Arbitration

On February 4, 2025, a federal judge ruled that Rogolino et al. v. Walmart Inc. must move to arbitration.

Maine Revenue Services Issues Important Notice on Proper Procedure for Claiming Credits on Sales Tax Returns

Maine Revenue Services (MRS) has issued an important notice regarding the proper procedure for claiming credits on sales tax returns for goods purchased for resale.

Tennessee Issues Tax Ruling on the Sales and Use Tax Applicability on Services Related to Employee Recognition Programs

A recent letter ruling from the Tennessee Department of Revenue (Department) clarifies how sales and use tax applies to various services offered in employee recognition programs.

California to End Bad Debt Deductions for Lenders and Affiliated Entities in 2025

Lenders and affiliated entities in California will no longer be able to claim bad debt deductions or request refunds for accounts deemed worthless, per Senate Bill (SB) 167.

Nevada Approves Sales Tax Exemption for Diapers

On November 5, 2024, Nevada voters approved a ballot measure that will exempt diapers from Nevada sales and use tax, effective January 1, 2025.

Illinois Appeals Court Partially Affirms False Claims Act Qui Tam Claim Against Lowe’s

The Appellate Court of Illinois First Judicial District has released an order affirming the Trial Court’s decision in case 15 L 50776, People of the State of Illinois, ex rel. v. Sears Brands, LLC, et al, Lowe’s Home Centers LLC Defendant- Appellee.

UPDATE: Oklahoma Amends Definitions of Food and Food Ingredients for Sales Tax Exemption

For purposes of Oklahoma’s sales tax exemption for food and food ingredients, the state has clarified the definition of “prepared food” and added definitions for “bottled water” and “food sold with eating utensils provided by the seller.”

Louisiana Denies Retailer Bad Debt Refund for Purchases on Store Cards

The Louisiana Court of Appeals has denied Dillard\’s department store their appeal for a refund of sales tax remitted for purchases customers paid for with store credit cards.

Colorado Imposes New Retail Delivery Fee

Colorado will impose a $0.27 retail delivery fee beginning on July 1, 2022.

Oklahoma Removes State Level Tax On Food Effective August 2024

The governor of Oklahoma has signed a bill that will reduce the state sales tax rate on food and food ingredients to zero percent.

Kansas Reduces Sales and Use Tax Rate on Food and Food Ingredients

Effective January 1, 2024, Kansas’s state sales and use tax rate on food and food ingredients and certain prepared food is reduced to 2%.