KBF Sales and Use Tax Newsletter – 3rd Quarter 2025
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Here are recent court rulings, legislation, and administrative changes that have significantly impacted sales tax landscapes across the country.
Colorado eliminated its state sales tax vendor fee as of January 1, 2026, preventing retailers from retaining any portion of collected taxes to cover administrative costs. The state’s Retail Delivery Fee also decreased to $0.28 for the July 2025-June 2026 period.
Florida repealed sales tax on commercial property rentals effective October 1, 2025, and made permanent several sales tax exemptions for items previously exempt only during temporary tax holidays, starting August 1, 2025.
Illinois is offering a tax amnesty program from October 1 through November 17, 2025, allowing taxpayers to settle liabilities from June 30, 2018, to July 1, 2024, without penalties or interest if paid by November 15, 2025.
Louisiana now includes digital products in its $100,000 economic nexus threshold calculation, potentially requiring more remote sellers to collect sales tax. Maine will begin taxing digital streaming services like Netflix, Hulu, and Spotify starting January 1, 2026.
Missouri exempted diapers, incontinence products, and feminine hygiene products from sales tax effective August 28, 2025.
Washington now subjects temporary staffing services to retail sales tax and B&O tax as of October 1, 2025, and is offering a voluntary disclosure program for unreported investment income through April 30, 2027, without penalties or interest.
Download the file here to read more about these updates. Please note that this is only an overview. For specific guidance, consult with your KBF service team or find a KBF tax professional here.