Regulatory Analysis
In Connecticut, a surcharge is assessed by the Public Utilities Regulatory Authority on all phone lines, including prepaid wireless services, in order to fund E911 services. Each fiscal year the amount of the surcharge is reviewed. Pursuant to Public Utilities Regulatory Authority Docket No. 26-01-05, the surcharge has been increased for prepaid wireless services from $0.69 […]
Illinois has reinstated its back-to-school sales tax holiday under Public Act 104-0468. From August 7–16, 2026, the state sales tax rate on qualifying clothing under $125 and eligible school supplies drops from 6.25% to 1.25%.
Signed in to law on June 3, 2026, Colorado House Bill 1289 makes numerous tax modifications in the state. Among these items is the repeal the sales and use tax exemption for property used in space flight beginning January 1, 2027, with reinstatement of the exemption beginning January 1, 2030. Additionally, the legislation prohibits local […]
The Massachusetts Department of Revenue updated 830 CMR 62B.2.1, Withholding of Taxes on Wages and Other Payments, effective June 5, 2026. The most significant change affects withholding agents paying compensation to performers. The updated regulation adds a new sentence providing that when a withholding agent’s gross payment to an individual performer exceeds the taxable income […]
The IRS released Internal Revenue Bulletin 2026-24 on June 8, 2026, containing Notice 2026-33, which provides guidance on qualified long-term care distributions under section 334 of the SECURE 2.0 Act of 2022. The provision applies to distributions made after December 29, 2025. The most significant development for information return filers is the introduction of Form […]
The IRS has released its 2026 version of form 1099-NEC. The form reports non-employee compensation. There are a few changes to the form. The preamble to the form has been updated to provide direction on when a form can be reported to the IRS and when it can be issued to a recipient during the […]
The IRS released an update to Publication 1220 (Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498 and W-2G). This publication provides technical specifications and procedures for transmitters and issuers who file information returns electronically through the Filing Information Returns Electronically (FIRE) system. The revision date has been updated to May 2026. […]
The IRS has released a revision of Form 1099-K, Payment Card and Third Party Network Transactions, along with updated instructions for use in reporting payments made during calendar year 2026. The most significant development is the permanent return of the third-party settlement organization (TPSO) reporting threshold to its original standard: reporting is required only where […]
The Arkansas Department of Finance and Administration recently announced its quarterly local sales and use tax rate changes, effective July 1, 2026. The local county sales tax rate has decreased in Cross County to 2.125% and in Jackson County to 1.875%. At the city level, the local sales tax rate increased in El Dorado to […]
Massachusetts lawmakers recently set the date for the annual sales tax holiday. The 2026 holiday will take place August 8th and 9th. During the holiday, the state’s 6.25% sales tax is suspended for most retail items priced under $2,500. For more information on the announcement of the annual sales tax holiday in Massachusetts click here.
Beginning July 1, 2026, nonelectronic school supplies are exempt from sales tax in Connecticut (CT) when purchased for a nonbusiness purpose. See Public Act No. 26-68. The Act originally included this language: “such as backpacks, lunchboxes, notebooks, pens and pencils, crayons, rulers and paper.” However, CT recently passed Public Act No. 26-76, which removed the reference […]
Colorado House Bill 1289 temporarily suspends the sales and use tax exemption for property used in space flight, starting January 1, 2027 through December 31, 2029. Beginning January 1, 2030, the exemption will be reinstated to its original scope.More information may be found here.
South Carolina legislature recently passed bill HB 5122 introducing an exemption for certain supplies purchased by internet access service providers and communications service providers. All supplies, technical equipment, machinery, and electricity sold to internet access service providers and communications service providers, for use in producing, broadcasting, or distributing internet access service, communications services, or any […]
Colorado recently passed House Bill 1223, which eliminates the sales and use tax exemption for downloaded software. The legislation does, however, create a new exemption for downloaded software governed by a negotiable license or custom-built for a specific user. Both changes take effect January 1, 2027. More information may be found here.
Alaska recently passed House Bill 1, which exempts certain gold and silver bullion from local sales and use tax. The legislation also recognizes select specie as a form of legal tender in the state. Both provisions take effect August 28, 2026.More information may be found here.
The Colorado Department of Revenue published local sales and use tax changes effective July 1, 2026. Changes include rate increases, adopted exemptions, and newly imposed sales taxes in jurisdictions such as Sanford, Pueblo Rural Fire Protection District, and Upper Pine River Fire Protection District. More information concerning the July 1, 2026 local changes may be […]
Finances Quebec published Information Bulletin 2026-4 on May 25, 2026. The bulletin details additional food categories and hygiene products that will be zero-rated. These items included toilet paper, fruit salads, ice cream, and donuts. The zero-rate does not apply if the food items are sold at establishments where food sales are taxable under current QST […]
South Carolina enacted House Bill 5208, amending S.C. Code § 12-36-2120(75) to clarify that the unprepared food exemption remains unaffected by “any demonstration project pursuant to United States Department of Agriculture regulations that would limit the use of food coupons on otherwise eligible items for a limited period of time.” In other words, any temporary […]