Sales Tax news
US sales and use tax developments, including economic nexus thresholds, marketplace facilitator rules, the taxation of software and digital products, and state amnesty programmes.
201 articles in the archive, showing the latest 50.
Supreme Court: Tax Classification Must Be Based on Product Form at Time of Sale, Not Consumer’s Later Use
India's Supreme Court ruled that tax classification of a product must be determined by its form at the point of sale, not by how a consumer subsequently uses it. The ruling came while dismissing the Madhya Pradesh Commercial Tax Department's…
Amazon Patron's Sales Tax Overcharge Suit Tossed, For Now
A Washington federal magistrate judge dismissed a proposed class action against Amazon alleging overcollection of Tennessee sales tax. The court found the plaintiff failed to show Amazon's alleged overcollection was motivated by profit or other business purposes. The case was…
Amazon Patron's Sales Tax Overcharge Suit Tossed, For Now
A Washington federal magistrate judge dismissed a proposed class action against Amazon alleging overcollection of Tennessee sales tax, finding the plaintiff failed to demonstrate the overcollection was motivated by profit or other business motives. The case was dismissed without prejudice.
Florida Sales Tax Refund for Home-Hardening Products
Florida is offering a sales tax refund program for home-hardening products, likely aimed at encouraging residents to invest in storm or disaster-resistant home improvements. The refund or exemption provides a tax relief mechanism for qualifying purchases such as impact-resistant windows,…
Can states tax past digital product sales? The Colorado Netflix case explained
When a state changes its tax rules for digital products, sellers need to know whether the change applies retrospectively or only to future sales. Colorado's case against Netflix illustrates why this distinction matters and how the answer is determined.
KPRA collects Rs13.123bn from Sales Tax on Services & IDC in first quarter of FY 2026-27
The Khyber Pakhtunkhwa Revenue Authority (KPRA) collected Rs13.123 billion from Sales Tax on Services and Infrastructure Development Cess in the first quarter of the 2026-27 financial year, according to the Advisor to the KP Chief Minister on Finance.
Missouri Limits Sales Tax Reach Over Digital Products and Software Services
Missouri has moved to restrict the scope of sales tax as applied to digital products and software services, clarifying which categories fall outside taxable reach. The development reflects a legislative or regulatory determination on the treatment of digital goods, providing…
Illinois Launches Remote Seller Sales Tax Amnesty Program
Illinois has introduced a sales tax amnesty program targeting remote sellers who have failed to register and remit sales tax as required under economic nexus rules established post-Wayfair. The program offers eligible remote sellers the opportunity to come into compliance…
States Drop 200-Transaction Sales Tax Nexus Thresholds
Multiple U.S. states are eliminating the 200-transaction threshold that previously served as one of two prongs for establishing economic nexus for sales tax purposes, following the South Dakota v. Wayfair standard. This shift means sellers will now trigger nexus obligations…
Alabama Excludes Certain Credit Card Processing Fees from Taxable Sales Price
Alabama has enacted a rule excluding certain credit card processing fees from the taxable sales price, providing relief for businesses that pass payment processing costs on to customers. Under the new treatment, separately stated credit card surcharges or processing fees…
Pennsylvania Changes Local Sales Tax Sourcing Rules
Pennsylvania has updated its local sales tax sourcing rules, affecting how sales are assigned to specific local jurisdictions for tax collection and remittance purposes. The changes impact how remote and in-state sellers determine which local rate applies to transactions, particularly…
Missouri: Digital Game Cosmetic Items and Software Subscriptions Not Taxable
Missouri has clarified that digital game cosmetic items—such as in-game skins, outfits, and visual enhancements—as well as software subscriptions, are not subject to Missouri sales tax. The ruling distinguishes these digital goods from taxable tangible personal property or taxable digital…
Marketplace Facilitator Sales Tax: Overlooked Local Tax Obligations
Marketplace facilitator laws, which govern sales tax collection by online platforms, may create local tax obligations that go beyond state-level requirements. Businesses operating through marketplace facilitators should be aware that local tax duties can exist separately from state sales tax…
What's Next For Prediction Markets If States Win At High Court
If states prevail at the Supreme Court in their efforts to regulate prediction markets, the outcome would not produce a single uniform transition. Instead, according to Howard Herndon at Bradley Arant, it would trigger a wave of state legislature bills…
Federal Surcharge Drives Another Increase in Wireless Taxes and Fees in 2026
Excise taxes and fees on wireless services in the United States have increased again in 2026, driven by a federal surcharge. Rates vary by state.
Jay Leno Hails California Crackdown on Supercar Tax Avoiders
Jay Leno, known for his extensive car collection and involvement in California legislation on smog-check rules for classic cars, has voiced support for California's crackdown on wealthy car owners who use Montana licence plates to avoid paying the state's vehicle…
US Washington DC 1% sales tax rise delay to Oct 2027
Washington DC has delayed a planned 1% sales tax rate increase until October 2027. The postponement affects businesses and consumers operating in the District, giving them additional time before the higher rate takes effect. The change represents a notable shift…
Washington Introduces 9.9% Tax on Certain Peer-to-Peer Car-Sharing Transactions from 2027
Washington State has enacted a 9.9% tax on peer-to-peer car-sharing transactions, effective from 2027. The levy targets transactions facilitated through car-sharing platforms where private vehicle owners rent their cars to others. This represents a new sales tax category specifically designed…
KPRA team visits private hospitals, directs to submit financial data
An enforcement team from the Khyber Pakhtunkhwa Revenue Authority's Mardan and Malakand Region visited a number of registered private hospitals and directed them to submit their financial data.
Florida DOR Clarifies Sales Tax Refund Rules for Surtax Forms
The Florida Department of Revenue has issued clarification on sales tax refund procedures specifically relating to surtax forms. The guidance addresses how businesses and taxpayers should handle refund claims where county-level discretionary sales surtaxes are involved, clarifying the correct forms…
Topeka May Prioritize Housing Sales Tax Over General Government Tax Increase
The city of Topeka, Kansas is considering prioritizing a dedicated housing sales tax measure over a broader general government tax increase. Local officials are evaluating whether a targeted sales tax specifically funding housing initiatives would be more palatable to voters…
State Tax Developments: Social Media, Digital Ads, Sales Tax, and More
A roundup of recent U.S. state-level tax developments covers several notable areas including social media platforms, digital advertising taxes, and sales tax obligations. States continue to expand their tax reach into digital services and online advertising, with new rulings, legislative…
State Rundown 9/24: States Reckon with Tightening Fiscal Futures
States across the United States are facing tightening fiscal conditions as inflation and broader economic difficulties continue to put pressure on state budgets.
The hidden sales tax risks in food and beverage
Food and beverage retailers face a significant sales tax risk from products in their catalogues that are assigned to the wrong tax category, an error that can go unnoticed.
Md. Governor Calls For Ending Data Centers' Tax Exemption
The governor of Maryland has called for ending tax exemptions for data centres, joining a growing number of state executives withdrawing support for such tax breaks.
States’ Nonconformity with Federal Measurements Creates “Barrels” of Compliance Costs
Six US states define barrels of oil or beer using non-standard volumes that differ from federal measurements. This lack of conformity with federal standards creates additional compliance costs for businesses operating across state lines.
Missouri Updates Sales and Use Tax Rules for Third-Party Shipments
Missouri has updated its sales and use tax rules governing third-party shipment arrangements, clarifying how tax obligations are allocated when goods are shipped by a third party on behalf of a seller. The revised rules address nexus, sourcing, and collection…
Wash. Appeals Court Revives Colo. Tax Payment Dispute
A Washington state appeals court has sent back to a trial court a dispute over whether a Colorado company and its affiliates owe Washington's business and occupation tax. The appellate panel ruled that whether intercompany payments constitute profit, royalties or…
US Pennsylvania Sales Tax on SaaS Software and Digital Products
Pennsylvania imposes sales tax on SaaS, software, and digital products, making it one of the states that broadly taxes digital goods and services. The state treats electronically delivered software similarly to tangible personal property, meaning cloud-based software subscriptions and digital…
Oklahoma Letter Ruling Treats Hosted SaaS and Related Services as Exempt
An Oklahoma letter ruling has determined that hosted Software-as-a-Service (SaaS) and certain related services qualify for sales tax exemption within the state. The ruling provides important guidance for technology vendors and their customers on how Oklahoma tax authorities classify cloud-based…
Rhode Island Treats Access to AI-Assisted Reports as Taxable Hosted Software
Rhode Island has issued guidance classifying access to AI-assisted reports as taxable hosted software services. The ruling means that businesses providing customers with AI-generated or AI-assisted reporting tools delivered via the cloud will be subject to Rhode Island sales tax,…
Wisconsin Supreme Court Leaves Online Ticket Marketplace Sales Tax Decision in Place
The Wisconsin Supreme Court has declined to disturb a lower court ruling on sales tax obligations for an online ticket marketplace. The decision upholds the existing ruling, affirming how sales tax rules apply to marketplace facilitators operating in the online…
Florida Extends Second Amendment Sales Tax Holiday Through December 31
Florida has extended its Second Amendment sales tax holiday on firearms, ammunition, and related sporting goods through December 31. Originally a time-limited exemption, the extension provides continued relief from sales tax on qualifying purchases, benefiting consumers and retailers in the…
Texas Appeals Court Seeks Clarity On Fulfillment Center Tax
A Texas appeals court is seeking clarification on the tax treatment of fulfillment centers, a case with significant implications for sales tax nexus and how states assess tax obligations on goods stored or processed through third-party logistics facilities. The ruling…
SALT Alert: California Enacts SB 122 – Sales Tax Expansion to Digital Products Updates
California has enacted SB 122, expanding sales tax to digital products. This legislative update represents a significant change for businesses selling digital goods and services in California, requiring them to collect and remit sales tax on previously exempt digital transactions.…
US Maine Sales Tax on SaaS Software and Digital Products
Maine imposes sales tax on SaaS, software, and digital products, making it one of the US states that taxes these categories. The article outlines how Maine's sales tax rules apply to software-as-a-service, downloaded software, and other digital goods sold to…
British Columbia brings professional services within PST from 1 October 2026
British Columbia is expanding its Provincial Sales Tax (PST) base to include professional services effective 1 October 2026. This represents a significant legislative change for service providers operating in the province, bringing previously exempt professional services within the scope of…
New York Waste Tire Fee: What Out-of-State Auto Dealers Need to Know
New York has introduced a waste tire fee that applies to out-of-state auto dealers selling into New York. This update outlines compliance obligations for dealers not physically located in New York, explaining how the fee applies, registration requirements, and collection…
Your Client Has 501(c)(3) Status. Is Its Illinois Real Estate Exempt?
This article examines whether Illinois real estate owned by a 501(c)(3) nonprofit organization qualifies for property tax exemption. Having federal tax-exempt status does not automatically confer Illinois real estate tax exemption; additional state-level requirements must be met. The analysis covers…
October 1 Sales Tax Rate Changes: What Businesses Need to Know for Q4 2026
Businesses operating in the United States face updated sales tax rates taking effect October 1, 2026, marking the start of Q4. The changes span multiple states and localities, requiring companies to review and update their tax calculation systems before the…
Punjab brings home tuition centres, academies under tax net
The Punjab provincial government in Pakistan has expanded its tax base by bringing home tuition centres and private academies under the tax net. This regulatory move requires these previously untaxed educational service providers to register and comply with provincial tax…
Indiana Sales Tax on Cloud-Based Educational Platforms
Indiana imposes sales tax on cloud-based educational platforms, raising compliance considerations for providers and institutions operating in the state. The taxability of software-as-a-service and digital educational tools under Indiana's sales tax framework is examined, including how the state classifies cloud-based…
As Nicotine Pouch Market Grows, States Face Trade-Off Between Tax Revenue and Harm Reduction
As nicotine pouches gain market share, states are grappling with how to tax them effectively. Unlike cigarettes or smokeless tobacco, nicotine pouches occupy a regulatory gray area, with some states taxing them as tobacco products and others applying separate excise…
Utah Takes Montana License Plate Fight to 80,000 Vehicle Owners
Utah is pursuing approximately 80,000 vehicle owners who registered their cars in Montana to avoid paying Utah's sales tax and registration fees. Montana does not charge sales tax on vehicle purchases, making it a popular tax avoidance strategy for residents…
FBR cuts sales tax on locally manufactured hybrid vehicles
Pakistan's Federal Board of Revenue (FBR) has reduced sales tax on locally manufactured hybrid vehicles, offering a fiscal incentive to boost domestic production and adoption of fuel-efficient automobiles. The rate cut is designed to make hybrid vehicles more competitively priced…
FBR allows instalment payments for sales tax on imported mobile phones
Pakistan's Federal Board of Revenue (FBR) has introduced a new facility allowing importers of mobile phones to pay applicable sales tax in instalments rather than as a lump sum at the point of import. This measure is intended to ease…
How SaaS Classification Changes Create Hidden Sales Tax Exposure
Changes in how SaaS products are classified can create unexpected sales tax exposure for businesses. As states increasingly treat software-as-a-service differently from traditional software licenses, companies face compliance risks when their products are reclassified or when they expand into new…
Durable Medical Equipment Sales Tax Exemptions: What a Michigan Court Teaches Medical Sellers
A Michigan court ruling on sales tax exemptions for durable medical equipment (DME) offers important guidance for medical sellers navigating complex exemption rules. The case clarifies how exemptions apply to DME products, highlighting the conditions under which such items qualify…
Tax Due On Leased Part Of City Parking, Minn. Court Says
A Minnesota court has ruled that a portion of a city-owned parking facility leased to a private entity is subject to property tax. The decision clarifies that the tax-exempt status of municipally owned property does not extend to sections leased…
Cannabis Equipment OK For Tax Break, Colo. Dept. Says
The Colorado Department of Revenue has determined that equipment used in cannabis cultivation and processing qualifies for a state tax exemption or break, providing clarity for businesses operating in the legal cannabis industry. This guidance helps cannabis operators understand which…