
Major Sales Tax Changes in 2025: New Rates and Rules
Sales Tax Changes in 2025: The Rules Are Changing Faster Than Your Business Can Adapt Whether you’re a CFO, controller, or tax lead at a

Sales Tax Changes in 2025: The Rules Are Changing Faster Than Your Business Can Adapt Whether you’re a CFO, controller, or tax lead at a
Effective October 1, 2025, the State of Florida will repeal the state sales tax on rent or license fees for the use of real property.
Rhode Island recently passed legislation which imposes sales tax on short-term parking services. The term is defined to include parking services for less than one
Effective January 1, 2026, Colorado HB 1005, eliminates the sales tax vendor fee retailers may retain in connection with remitting and collecting sales tax. Previously,
Localities in Virginia may impose a $0.05 bag fee on each disposable plastic bag provided to customers at check out. Locals need to pass an
The town of Clifton, Arizona has adjusted its tax code to establish a tiered use tax rate beginning October 1, 2025. For items $10,000 or
The city of Maricopa, Arizona enacted an ordinance to increase the general transaction privilege tax rate by 0.50% beginning October 1, 2025. The increase does

Earlier this year, the CFO of a mid-sized manufacturing firm received an audit notice from the state of Illinois. Nothing unusual, these things happen. Their
Effective September 1, Alabama will exempt qualifying baby supplies, baby formula, maternity clothing, and menstrual hygiene products from state sales and use tax. Further details
The Missouri legislature passed HB 594, creating an exemption for diapers, feminine hygiene products and incontinence products. The exemption is set to begin on August
The City of Kake has completed the process to join the Alaska Remote Sellers Sales Tax Commission (ARSSTC). Sellers must begin collection on 9/1/2025 and

Sales tax regulations are shifting fast—with key changes already impacting businesses in 2025. In this webinar, Sovos legal experts will break down the latest updates,
Effective July 10, 2025, Alaska HB 123 became law without the Governor’s signature. The legislation provides for a reduction in the Vehicle Rental Tax rate from
New Mexico lawmakers recently passed HB 218, which changed the dates of the annual back to school tax holiday to the last weekend of July.
Effective January 1, 2026, Illinois will exempt food for human consumption through a repeal its 1% sales tax. This exemption will not apply to alcoholic
Beginning January 1, 2026, Illinois will eliminate the 200-transaction threshold for establishing economic nexus for sales tax purposes. Going forward, both remote retailers and marketplace
Massachusetts lawmakers recently set the date for the annual sales tax holiday. The 2025 holiday will take place August 9th and 10th. During the holiday,
The Colorado Department of Revenue recently released the July 2025 local sales tax changes. Among the changes were new state-administered districts to supplement funding for