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| March 3, 2026 | 12:00 pm EST | 1 hour |
The Rhode Island Department of Revenue recently found that sales of access to online databases should be subject to sales and use tax as this is considered the sale of vender-hosted prewritten computer software. In the decision, the Department noted that “searchability” (i.e., the ability to research/retrieve information) from a database is a main factor for the taxable determination. Please reference Case No. 22-T-050; No. 2026-01 for the full decision.
Join Sovos regulatory expert Chuck Maniace and product marketing leader Vadim Nemtsev for a practical exploration of why Financial Services has become a high-risk sales tax segment and what your organization should do about it.
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| March 3, 2026 | 12:00 pm EST | 1 hour |
30 March – 1 April , 2026
Park Hyatt Dubai, Dubai Creek Club St Port Saeed - Dubai
We’re proud to sponsor the E-invoicing Exchange Summit. As the Middle East continues to establish itself as a global fintech hub, with the UAE at the forefront of digital tax transformation. The 2026 E-Invoicing Exchange Summit will explore regional e-invoicing requirements, real-time compliance readiness and the technologies shaping the future of digital taxation. Featuring an exhibition of leading solution providers and insights from Alex Pavel on why vendor foresight not deadlines defines real-time readiness, the Summit offers a forward-looking perspective on compliance in an increasingly connected economy.
To review the agenda and registration details click here.
Park Hyatt Dubai, Dubai Creek Club St
Port Saeed – Dubai
Illinois imposes a statewide sales and use tax rate of 6.25%. The state does allow local jurisdictions to levy additional sales taxes; cities, counties, and special districts in Illinois can impose their own sales tax in addition to the state tax rate. The following are examples of special local taxes in Illinois, in addition to standard state and local taxes:
Illinois sales and use tax applies to the sale and lease of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.
Examples of taxable items and services include:
A seller is liable to collect and remit Illinois sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Illinois
Illinois enforces economic nexus for remote sellers. If your business has:
you may be required to register for and collect Illinois sales tax.
Learn more on the Out-of-State Retailer Maintaining a Place of Business in Illinois Registration Flowchart.
Illinois Sales Tax Exemptions
Certain sales in Illinois are considered generally exempt from the sales and use tax requirements.
Additionally, Illinois exempts sales to certain entities from the sales/use tax, including the following:
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts: STAX-1 Registration as the most commonly used form
Additional guidance on acceptable exemption formats can be found in Tax exempt organizations.
Illinois offers multiple methods for filing and remitting sales and use tax:
Electronic payments are required if your annual tax liability meets or exceeds $20,000 for Retailer’s Occupation and Use Tax
No, Illinois does not currently offer sales tax holidays.
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, Illinois imposes the following point of sale fees:
E-911 Fee
Tire User Fee
Generally, Illinois does not apply sales tax to shipping charges when the charges are separately stated on the contract or invoice.
For sellers maintaining physical nexus with Illinois, Illinois generally requires origin sourcing for intrastate transactions and destination sourcing for interstate transactions.
For sellers with only economic nexus with Illinois, destination sourcing applies.
Illinois businesses or individuals selling tangible personal property or certain services to Illinois consumers may need to register to collect sales tax when meeting qualifying requirements. More information may be found at: Business Registration
For more information on U.S. sales tax compliance across all 50 states, check out our:
Looking for an easier way to manage sales tax in [State] and beyond? Learn how Sovos simplifies compliance.
March 16-19, 2026
The Bellagio Hotel & Casino 3600 Las Vegas Blvd S, Las Vegas, NV 89109
Sovos is proud to sponsor SAPinsider Las Vegas 2026!
Join us to unlock more value from your SAP landscape and get the strategies you need to move forward with confidence. Go beyond the hype with practical, real-world insights across every corner of the SAP ecosystem. Whether you’re planning a migration, optimizing operations, or leading enterprise transformation, you’ll find actionable guidance and peer-tested strategies to help you get more from what you have and prepare for what’s next.
Reserve your ticket today!
To review the agenda and registration details click here.
Join Hyundai Motor America and Sovos for a behind-the-scenes look at how a major automotive brand streamlined U.S. sales tax compliance with real-time, SAP-integrated automation.
In this session, Al Chan, Senior Tax Manager at Hyundai, and Vadim Nemtsev, Director of Product Marketing at Sovos, share the joint journey to implement Sovos Global Tax Determination (GTD) — a modern, cloud-native tax engine embedded directly into SAP S/4HANA.
Attend this webinar to discover how Hyundai:
Eliminated manual tax calculations across high-volume transactions
Handled tax determination in all U.S. jurisdictions with precision and speed
Achieved real-time compliance using Sovos’ certified SAP connectors and automated rule updates
Future-proofed tax operations with scalable architecture and regulatory monitoring
This session is ideal for SAP finance, tax, and IT leaders seeking to modernize legacy tax engines, reduce audit risk, and align tax compliance with digital transformation initiatives.
Register to watch the webinar here.
Why Financial Institutions Overpay Sales & Use Tax and How to Stop It
$750,000. That’s how much one mid-size U.S. bank recovered in a single quarter—money they’d been overpaying in use tax for years without realizing it.
This wasn’t a struggling institution with a skeleton crew managing compliance. They had competent tax professionals. Established processes. They believed they were compliant. They were compliant. They were just wrong.
And if you’re leading finance, tax, or operations at a bank, credit union, lender, or fintech, there’s a good chance the same thing is happening to you right now.
Financial services institutions are built on precision. Every basis point matters. Every dollar is tracked, audited, and reconciled. Risk management isn’t a function; it’s the foundation of everything you do.
And yet, when it comes to sales and use tax compliance, many of the most sophisticated financial institutions in America are operating blind.
Consider the math: the average mid-size financial institution processes over 10,000 procurement transactions per month. If just 3% involve incorrect tax treatment, that represents 300+ potential audit triggers every single month. Over a year, that’s 3,600 opportunities for errors to compound, errors that auditors are trained to find.
The annual U.S. tax compliance burden exceeds $546 billion. With 12,000+ tax jurisdictions and 25 states now taxing SaaS products, the complexity is exploding.
Your organization isn’t just “a company with lots of transactions.” The nature of how financial services institutions operate creates a distinct tax compliance profile that standard solutions often fail to address.
Massive procurement ecosystems: Banks, lenders, and fintechs purchase from thousands of vendors across every category — technology services, data subscriptions, professional consulting, equipment, facilities management. Each category has different taxability rules that vary by state.
Decentralized purchasing: Unlike manufacturing where procurement flows through central purchasing, financial services organizations have purchases initiated from branches, trading floors, operations centers, and remote teams. Consistent tax treatment across all entry points is nearly impossible without automation.
Multi-entity structures: Holding companies, bank subsidiaries, broker-dealer entities, insurance affiliates – financial services groups often operate through complex legal entity structures spanning multiple states. Each entity may have different nexus obligations and exemption statuses.
Technology intensity: No industry has embraced SaaS and cloud services more aggressively than financial services. From core banking systems to trading platforms to customer-facing apps, your technology stack is vast and increasingly subject to sales tax in ways it wasn’t five years ago.
Both buyer AND seller: Here’s what truly sets financial services apart: you’re not just a buyer managing use tax exposure. You’re increasingly a seller of taxable digital services. Credit monitoring tools, financial planning dashboards, loan origination platforms – these SaaS products may trigger sales tax collection obligations you’ve never considered.
If there’s a single emerging risk keeping financial services tax directors up at night, it’s this: SaaS taxation is exploding in complexity, and most organizations are behind.
Twenty-five states now tax SaaS in some form. Seven additional states tax SaaS with download components. Just in 2024, California expanded sales tax to cover certain digital services including data extraction and analytics that are core to modern financial operations. Vermont began taxing prewritten software delivered remotely.
The same credit monitoring SaaS product might be fully taxable in Texas, partially taxable in Connecticut (6.35% for personal use, 1% for business), completely exempt in Florida, and subject to entirely different rules in Washington. Your vendor doesn’t know your business-use status and probably isn’t getting it right.
Now flip the script. If you offer any digital product to customers (and in 2025, almost every financial institution does) you may be triggering sales tax collection obligations without knowing it. Credit monitoring subscriptions, personal finance apps, loan prequalification tools, client portfolio dashboards, fraud alert services, white-labeled fintech platforms: all potentially taxable.
Under economic nexus rules established after South Dakota v. Wayfair, you can trigger collection obligations in states where you have no physical presence just by selling to enough customers there. For a bank with customers in all 50 states, or a fintech serving a nationwide user base, crossing these thresholds is nearly inevitable.
If SaaS taxation is the emerging threat, use tax is the chronic condition that never quite gets treated.
The concept is deceptively simple: when you buy something and the vendor doesn’t charge you sales tax, you owe “use tax” to your state at the same rate. It’s a self-assessed obligation in every state with a sales tax. In practice, it’s anything but simple.
Consider what happens with every purchase: Vendor invoices you. Invoice may or may not include sales tax. If tax is charged, was it the right amount? If not charged, do you owe use tax? At what rate and to which jurisdiction? How do you accrue and remit correctly? At each step, there’s room for error. Multiply this across thousands of transactions per month, and errors become statistically inevitable.
Vendor trust: You assume if the vendor charged tax, they got it right. They often don’t. Vendors may not know your exemption status, your ship-to location rules, or the current rate in your jurisdiction.
Exemption confusion: Financial services organizations often qualify for exemptions on certain purchases, but claiming exemptions requires documentation that vendors accept. Without centralized certificate management, exemptions go unclaimed or get challenged in audits.
Blanket accruals: Some organizations simply accrue use tax on everything where no tax was charged, a “better safe than sorry” approach. This leads to massive overpayment on exempt purchases and services.
Inconsistent application: Without automated rules, similar transactions get treated differently depending on who processes them, what time of month it is, and how busy the team is. Inconsistency is an auditor’s dream.
State auditors targeting use tax compliance in financial services typically focus on out-of-state vendor purchases, technology and SaaS purchases with unclear taxability, professional services, fixed asset purchases, intercompany transactions, and purchases from non-traditional vendors like Amazon Business.
Beyond the actual tax owed, assessments typically include interest (8-12% annually from original due date), late payment penalties (5-25% of tax owed), negligence penalties for systematic failures, and fraud penalties up to 50%+ in cases of willful noncompliance.
An audit covering four years that finds $200,000 in underpaid tax can easily result in $350,000+ in total assessment after interest and penalties. And that’s for one state. Multi-state audits multiply quickly.
Financial institutions using automated use tax validation typically see a 65% reduction in monthly tax processing time, $500K to $1M+ in recovered over-accruals annually, 98%+ filing accuracy across all entities, and zero audit penalties post-implementation.
Here’s what that looks like for a mid-size bank: Starting with manual processes and three FTEs on tax compliance with periodic audit assessments, automation delivers approximately 800 hours per year saved (roughly $80,000 in labor value), first-year over-accrual recovery of $750,000, estimated avoided penalties of $50,000 per year, and filing efficiency gains of $30,000 per year in reduced external prep costs.
First-year ROI: greater than 400% return on technology investment.
Tax compliance, done right, isn’t just a cost to minimize. It’s a competitive advantage to leverage.
When your competitors are still processing tax manually, eating audit assessments, and missing recovery opportunities while you’ve automated the process, eliminated exposure, and redirected your tax team toward strategic work, that’s a meaningful edge.
The question isn’t whether your organization has hidden tax exposure. The question is how much and whether you’ll find it before an auditor does.
Assess your current exposure. Quantify what manual processes, audit risk, and missed recoveries are actually costing you. Build the business case, frame automation as an investment with measurable ROI, not just a compliance expense.
And engage a partner built for financial services, not generic tax tools adapted for your industry.
Learn more about purpose-built sales and use tax solutions for financial services.
Arkansas imposes a statewide sales and use tax rate of 6.5%, as established under the Arkansas tax code. While Arkansas does not allow local jurisdictions to levy their own independent sales tax structures, cities and counties may impose additional local sales taxes that apply on top of the Arkansas state tax rate.
As a result, the total Arkansas state tax burden can vary depending on where a transaction occurs. Businesses selling taxable goods or services in Arkansas, whether in-state or remotely, must understand and comply with AR sales tax law, including registration, collection, filing and remittance requirements.
Under Arkansas sales tax law, sales and use tax generally applies to tangible personal property and certain enumerated services. Sellers offering taxable products or services are required to collect and remit Arkansas sales tax or Arkansas use tax, depending on the nature of the transaction.
Common taxable items and services in Arkansas include:
A seller is liable to collect and remit Arkansas sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Arkansas.
Arkansas enforces economic nexus for remote sellers and marketplace facilitators. A business may be required to register and collect Arkansas sales tax if, during the previous calendar year, it had:
More details are available on the Arkansas Department of Finance & Administration Retail Sellers Page.
Arkansas also exempts sales to certain entities from the sales/use tax, including the following:
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts SST Certificate of Exemption – FOOO3 or Exemption Certificate FORM ST-391 as the most commonly used forms.
Additional guidance on acceptable exemption formats can be found in Sales and Use tax Forms (General section).
Arkansas does offer multiple methods for filing and remitting sales and use tax:
Businesses with average net sales of $200,000 or more per month must make required sales tax prepayments. Act 1142 also requires certain out-of-state sellers with high taxable sales volume to submit prepayments equal to 80% of their monthly state liability. Under Ark. Code Ann. §26-52-512, these prepayments must be made via electronic funds transfer (EFT).
Yes, Arkansas is part of the Streamlined Sales Tax (SST) initiative, a multi-state agreement designed to simplify and standardize sales tax rules. More information concerning SST may be found here.
Yes. Arkansas offers an annual back-to-school sales tax holiday, during which qualifying school supplies, clothing, and accessories may be purchased tax-free.
Yes, Arkansas imposes certain point-of-sale fees on specific products, including E911 and tire removal fees, which are collected from the final consumer at retail.
In most cases, Arkansas considers shipping, freight, and transportation charges to be part of the taxable sales price when the underlying product is taxable.
The current sales tax rate in Arkansas is 6.5%.
Arkansas is destination based for sales tax sourcing.
Yes. Arkansas accepts SER filings from any seller or tax provider capable of transmitting the return properly. Sellers do not need to participate in the SST Model 1 program to use SER—providers like Sovos can file on a seller’s behalf.
Arkansas businesses or individuals selling tangible personal property or certain services to Arkansas consumers may need register to collect sales tax when meeting qualifying requirements. More information may be found here: Register for a Tax Account
For more information on U.S. sales tax compliance across all 50 states, check out our:
Looking for an easier way to manage Arkansas sales tax, use tax, and compliance nationwide? Learn how Sovos simplifies sales tax compliance across all 50 states.
Kansas imposes a statewide sales and use tax rate of 6.5%. The state does allow local jurisdictions to levy additional sales taxes, which means businesses should verify local rates when calculating sales tax in Kansas.
Kansas sales tax rules apply to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit Kansas state sales tax to the state.
Examples of taxable items include:
A seller is liable to collect and remit Kansas state sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence, as outlined in Kansas Nexus laws. These rules are part of broader Kansas tax codes that govern compliance.
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Kansas.
Kansas enforces economic nexus for remote sellers. If your business has:
you may be required to register for and collect Kansas sales tax.
Learn more on the Kansas’ Department of Revenue Remote Sellers page.
Certain sales in Kansas are considered generally exempt from the sales and use tax requirements.
Additionally, Kansas exempts sales to certain entities from the sales/use tax, including the following:
To claim a Kansas sales tax exemption, an entity must provide an exemption certificate with the sale. The Department of Revenue accepts the ST-28A as the most commonly used form.
Additional guidance on acceptable exemption formats can be found in the Exemption Certificates Pub. KS-1520
Businesses must follow Kansas tax filing procedures to remain compliant. Kansas offers multiple methods for filing and remitting sales and use tax:
Yes, Kansas s part of the Streamlined Sales Tax (SST) initiative, a multi-state agreement designed to simplify and standardize sales tax rules.
No, Kansas does not currently offer sales tax holidays.
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, Kansas imposes the following point of sale fees:
As of July 1, 2023, Kansas does NOT charge sales tax on shipping/delivery charges if they are separately stated on the invoice.
Kansas is destination-based state for sales tax purposes
As of January 1, 2025, Kansas NO LONGER charges state sales tax on groceries (food and food ingredients). However, local sales taxes (city and county) may still apply
The contractor pays sales tax when purchasing materials, not when billing the customer.
Residential utilities like electricity, natural gas, propane, and water are exempt from Kansas state sales tax but may still be subject to local sales taxes, while the same utilities used for commercial or business purposes are fully taxable at both state and local levels.
Yes. Kansas accepts Simplified Electronic Returns (SER) from any seller or tax provider that can transmit the return properly. You don’t need to be in the SST Model 1 program to use the SER—providers like Sovos can file on behalf of any client who opts into that method.
Kansas businesses or individuals selling tangible personal property or certain services to Kansas consumers may need register to collect sales tax when meeting qualifying requirements. More information may be found at Kansas DOR Customer Service Center.
For more information on U.S. sales tax compliance across all 50 states, check out our:
Looking for an easier way to manage sales tax in Kansas and beyond? Learn how Sovos simplifies compliance.
Hawaii imposes a statewide General Excise Tax (GET) rate of 4%. The state does impose local taxes at the County level. Counties are authorized to adopt a surcharge on the 4% GE tax rate. Businesses may pass on the GE tax and any applicable county surcharge to customers at the maximum pass-on rate. All counties in the state of Hawaii have adopted said surcharge with a current rate of 0.50%.
Hawaii sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state. Understanding the nuances of sales tax collection in Hawaii is essential for businesses to stay compliant.
Examples of taxable items [and services] include:
A seller is liable to collect and remit Hawaii sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Hawaii.
Hawaii enforces economic nexus for remote sellers. If your business has:
you may be required to register for and collect Hawaii sales tax.
Hawaii Sales Tax Exemptions
Certain sales in Hawaii are considered generally exempt from the sales and use tax requirements.
Examples of exempt products and services in Hawaii include:
Additionally, Hawaii exempts sales to certain entities from the sales/use tax, including the following:
GET exemption certificates enable a purchaser to make tax-free purchases that would normally be subject to sales tax. The purchaser fills out the certificate and gives it to the seller. The seller keeps the certificate and may then sell property or services to the purchaser without charging sales tax.
Additional guidance and applicable forms can be found online here.
Hawaii offers multiple methods for filing and remitting GET:
No, Hawaii is NOT part of the Streamlined Sales Tax (SST) initiative
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, Hawaii imposes the following point of sale fees:
Businesses or individuals selling tangible personal property or certain services to Hawaii consumers need to register for a General Excise Tax (GET) license. More information may be found at the Hawaii Tax Portal under the Register New Business License link.
For more information on U.S. sales tax compliance across all 50 states, check out our:
Looking for an easier way to manage sales tax in Hawaii and beyond? Learn how Sovos simplifies compliance.
Arizona imposes a transaction privilege tax (TPT) on businesses in the state and is akin to sales tax administration. As such, it will often be referred to as “sales tax”. Arizona imposes a statewide TPT rate of 5.6%. The state does allow local jurisdictions to levy additional taxes.
Arizona TPT applies to the sale of tangible personal property and certain enumerated services. Sellers providing taxable goods and/or services are required to collect and remit TPT to the state.
Examples of taxable items and services include:
A seller is liable to collect and remit Arizona TPT if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Arizona.
Arizona enforces economic nexus for remote sellers. If your business has:
you may be required to register for and collect Arizona TPT.
Learn more on the Arizona Department of Revenue Economic threshold page.
Certain sales in Arizona are considered generally exempt from TPT requirements.
Additionally, Arizona sales tax exemptions apply to certain entities from TPT with proper documentation, including:
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts TPT Form 5000 – Exemption Certificate General as the most used form. Additional guidance on acceptable exemption formats can be found here.
There are multiple methods for filing and remitting sales and use tax in Arizona. This includes e-filing through AZ Taxes.gov as well as paper filing with Form TPT-EZ and Form TPT-2.
No, Arizona does not currently offer TPT holidays.
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, Arizona imposes the following point of sale fees:
Generally, Arizona does not apply TPT to shipping charges is seperately stated on an invoice.
Arizona is an origin based sourcing state.
Arizona businesses or individuals selling tangible personal property or certain services to Arizona consumers may need register to collect TPT when meeting qualifying requirements. More information on Arizona business tax registration can be found here.
For more information on U.S. sales tax compliance across all 50 states, check out our:
Looking for an easier way to manage TPT in Arizona and beyond? Learn how Sovos simplifies compliance.
Effective January 1, 2026, Chicago has increased the rate of its Personal Property Lease Transaction Tax from 11% to 15%. Further changes can be found here.
Ohio HB 186, signed by the governor on Dec 19, 2025, cancel’s the expanded August 2026 sales tax holiday as a part of a legislative package aimed at restructuring property taxes in the state. Historically, the sales tax holiday is over a two week period and broadly encompassing.
More information may be found here.
Chicago will reduce its Motor Vehicle Lessor Tax from $2.75 per rental period to $0.50 per rental period. This tax is imposed on the lease of motor vehicles within Chicago on a daily or weekly basis and is charged per the rental period in the lease agreement. This change is effective on January 1, 2026. Further changes can be found here.
Beginning January 1, 2026, Chicago will impose a new retail liquor tax of 1.5% on the sale of alcoholic beverages purchased for consumption off the premises where the alcohol was purchased. Further changes can be found here.
The State of Alaska sales tax system is unique compared to other U.S. states. Alaska does not impose a statewide sales and use tax, making it one of the few states without a general retail sales tax. Instead, sales tax in Alaska is administered at the local level, where cities and boroughs are permitted to levy their own taxes under Alaska tax policy.
Because of this decentralized structure, Alaska tax rates can vary significantly depending on the municipality. Businesses operating in Alaska must understand Alaskan municipal taxes to remain compliant.
At the state level, the answer is no—Alaska does not have a state sales tax. However, many local jurisdictions impose a form of Alaska retail tax, which applies to sales of goods and services within their boundaries. These local sales taxes fund municipal services and infrastructure.
Examples of Alaska local taxing jurisdictions include Juneau, Ketchikan Gateway Borough and Sitka, Other municipalities, such as Anchorage and Fairbanks, do not impose a general sales tax but may levy specific excise-style taxes on items like alcohol, tobacco, or short-term lodging.
While Alaska business taxes do not include a statewide sales tax, many municipalities impose local sales and use taxes on common retail transactions.
Typical taxable items and services under Alaskan municipal taxes include:
To streamline compliance for remote sellers, several Alaska local governments have entered into an intergovernmental agreement creating the Alaska Remote Seller Sales Tax Commission (ARSSTC). This commission provides centralized administration for participating jurisdictions that have adopted a uniform local sales tax code.
Under ARSSTC rules, remote sellers and marketplace facilitators may be required to collect sales tax in Alaska when statewide sales thresholds are met.
Physical nexus is established when a business has a tangible presence in a local jurisdiction. Physical presence may trigger collection obligations for Anchorage sales tax, Juneau sales tax, or other local taxes, depending on the jurisdiction.
The ARSSTC administers economic nexus for remote sellers. If your business has statewide gross sale of $100,000 or more from sales of property, products, or services delivered into Alaskayou may be required to register and collect applicable Alaskan municipal taxes through the commission.
More information is available on the ARSSTC Remote Seller Sales Tax Code webpage.
Certain sales in Alaska locals can be exempt from the sales and use tax requirements, though exemptions vary by municipality.
Common local exempt products and services include:
Additionally, Alaska locals exempt sales to certain entities from sales and use tax, including the following:
Because Alaska does not impose a statewide sales tax, there are no state-level exemption certificates. Sellers and purchasers must contact the applicable local jurisdiction directly to determine documentation requirements for exemptions under Alaskan municipal taxes.
Since there is no state-level sales tax, businesses must file returns and remit tax directly to the applicable local jurisdiction or through the ARSSTC if the locality participates. Filing frequencies, tax rates, and reporting requirements vary by municipality.
Yes, Alaska locals do offer sales tax holidays. However, many are limited to physical sales in the locality or seasonal.
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. At the state level, Alaska imposes a tire fee on new tires sold. With tired sold with studs over a certain weight having an additional fee. Locals do not generally impose point-of-sale fees.
Locals generally include shipping charges as a part of the sales price and therefore such charges are subject to tax.
Alaska locals generally employ destination based sourcing.
Alaska has no state level tax; taxpayers may contact the local jurisdiction or through AARSTC if applicable.
For more information on U.S. sales tax compliance across all 50 states, check out our:
Looking for an easier way to manage sales tax in [State] and beyond? Learn how Sovos simplifies compliance.
Understanding sales tax in Connecticut, including who must collect it, what’s taxable, and how to file, is essential for staying compliant—especially as rules evolve. This Connecticut sales tax guide breaks down the state of Connecticut sales tax rate, nexus requirements, exemptions, and filing obligations for businesses operating in or selling into the state.
The Connecticut sales tax rate is 6.35% statewide. Unlike many states, Connecticut does not allow local jurisdictions to impose additional sales taxes, meaning the sales tax rates for Connecticut are consistent across the state.
Connecticut sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.
Examples of taxable items and services include:
Connecticut also imposes a luxury tax, which applies in lieu of the standard Connecticut sales tax rate on certain high-value items, including certain motor vehicles, jewelry and clothing and footwear above threshold amounts.
A seller is liable to collect and remit Connecticut sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Connecticut
Connecticut enforces economic nexus for remote sellers. You must register and collect sales tax in Connecticut if, during the previous calendar year, your business had:
Meeting either threshold establishes Connecticut sales tax nexus.
Certain sales in Connecticut are considered generally exempt from the state’s sales and use tax requirements. Commonly exempt products and services include:
The state also exempts sales made to qualifying entities, including:
To claim an exemption, a purchaser must provide an exemption certificate to the seller at the time of sale. The seller keeps the certificate and may sell property or services without charging sales tax. Connecticut requires different exemption certificates for different types of exemption. To obtain the relevant form for a specific exemption, consult the Department of Revenue Services full list of certificates here.
Connecticut generally requires all businesses to e-file their sales and use taxes online through myconneCT.
Yes, Connecticut does offer sales tax holidays.
Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail. For example, Connecticut imposes the following point of sale fees:
Generally, Connecticut applies sales tax to shipping and delivery charges.
Connecticut is destination based for sourcing sales tax.
Businesses or individuals selling tangible personal property or certain services to Connecticut consumers may need to register to collect sales tax when meeting qualifying requirements. New business registrations must be completed online through myconneCT. More information may be found here.
For more information on U.S. sales tax compliance across all 50 states, check out our:
Looking for an easier way to manage sales tax in [State] and beyond? Learn how Sovos simplifies compliance.
New Jersey imposes a statewide sales and use tax rate of 6.625%. The state allows some cities to impose motor vehicle rental tax and there is one district sales tax for Kapkowski Road Landfill Reclamation District Project. Businesses should monitor New Jersey sales tax rates closely to ensure accurate compliance.
New Jersey sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state, following New Jersey sales tax rules.
Examples of taxable items include:
A seller is liable to collect and remit New Jersey sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or New Jersey economic nexus presence.
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of New Jersey.
New Jersey enforces economic nexus for remote sellers. If your business has:
you may be required to register for and collect New Jersey sales tax.
Certain sales are generally exempt from New Jersey sales tax rules and regulations.
Additionally, New Jersey exempts sales to certain entities from the sales/use tax, including the following:
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts Form ST-3NR (Resale) and Form ST-4 (Exempt Use) as the most commonly used forms.
Additional guidance on acceptable exemption formats can be found in New Jersey Tax Topic Bulletin S&U-6.
New Jersey offers multiple methods for filing and remitting sales and use tax:
Some sellers must also make monthly payments. You must make monthly payments only if you:
No, New Jersey does not currently offer sales tax holidays
No. Charges for demolition services are not subject to tax.
Yes. Debris removal services are servicing or maintaining real property and, as such, the charges are subject to tax.
No. The construction of a garage is an exempt capital improvement and as such the charges are not subject to tax. The property owner must issue the contractor a fully completed Certificate of Exempt Capital Improvement (Form ST-8) to document this exemption.
Yes. New Jersey accepts Simplified Electronic Returns (SER) from any seller or tax provider that can transmit the return properly. You don’t need to be in the SST Model 1 program to use the SER—providers like Sovos can file on behalf of any client who opts into that method.
New Jersey businesses or individuals selling tangible personal property or certain services to New Jersey consumers may need to register to collect sales tax when meeting qualifying requirements. More information may be found here.
For more information on U.S. sales tax compliance across all 50 states, check out our:
State-by-State Sales Tax Guide
Looking for an easier way to manage sales tax in New Jersey and beyond? Learn how Sovos simplifies compliance.