News

Effective January 1, 2025, retailers who have a place of business in Illinois and sell personal property from a location outside Illinois will be required to collect state and local taxes at the location where the property is shipped or delivered. Previously, retailers that maintained a business in Illinois and shipped orders from outside the…

Effective January 1, 2025, the sales tax vendor discount will be capped at $1,000 per month. The discount is provided to taxpayers that file and pay their vendor’s use tax on time. Previously, there was no cap on the discount. This change aims to reduce the compensation given to businesses for the administrative burden of…

Effective January 1, 2025, Illinois will begin taxing lease transactions. Prior to January 1, 2025, personal property was subject to tax at the time of purchase instead of during a lease term. Equipment purchased with the intention to re-lease to eventual clients will now be exempt from sales tax. Additionally, property subject to Chicago’s personal…

Effective January 1, 2025, the Alaska Remote Seller Sales Tax Commission will no longer use the number of transactions as a factor in determining economic nexus in the state. Remote sellers exceeding $100,000 in gross sales will need to register and remit sales tax to the Commission. Previously, remote sellers had to meet both a…

Here are recent court rulings, legislation, and administrative changes that have significantly impacted sales tax landscapes across the country. Remote Seller Nexus Thresholds Several states simplified their remote seller nexus thresholds. Alaska and North Carolina eliminated transaction-based thresholds, focusing solely on gross sales exceeding $100,000. This means that remote sellers in these states must now…

Effective July 1, 2024, the state’s sales and use tax exemption for remotely accessed prewritten computer software is repealed. As such, the previously exempt “cloud software” will be subject to Vermont’s 6% sales and use tax. As a result of the legislation, the sale of prewritten computer software will now be treated consistently, regardless of…

The new Texas regulation provides that when an order is fulfilled from warehouses or when the order is made through an automated website, the location where an order is “received” is the physical location of the seller or third party, specifically: “The location where the order is received by or on behalf of the seller…

In 2023, the state enacted a new retail delivery fee, assessing a fee of 50¢ per transaction; the new tax was effective starting July 1, 2024. A “retail delivery” is a delivery of taxable tangible personal property or clothing to a person located in Minnesota. The fee applies to each transaction where charges for these…

H.B. 8 is a broad bill that impacts various industries and tax types. While many of the changes only affected specific groups of taxpayers, there were a few broadly applicable changes. Specifically, the more broadly applicable changes include moving the sales tax filing threshold from $6,000 to $12,000 for certain service providers and establishing a…

The Arizona Court of Appeals determined that an online auto parts retailer that utilizes Arizona distributors for shipping, warehousing, and handling services, had substantial nexus with the state and was subject to Arizona’s transaction privilege tax. The Department of Revenue originally assessed tax on Arizona orders in an audit. The Arizona tax court later ruled…