Regulatory Analysis
Effective July 1, 2026, 56 municipalities and 3 counties in Illinois will begin imposing the 1% grocery tax. This follows the more than 600 localities that began imposing the grocery tax on January 1, 2026. More information can be found here.
The Puerto Rico Internal Revenue Code provides for a periodic sales tax holiday for certain hurricane preparedness items. Historically, the holiday occurs during the last weekend in May. However, pursuant to Circular Letter No. 26-08, issued on May 1, the dates for the holiday period this year will be May 22, 2026 – May 25, 2026.
The IRS has released the instructions for form 1099-DA for tax year 2026. These instructions are notable as 2025 was a transitional year for reporting this form, and the 2026 instructions are intended to be final instructions for the form. Form 1099-DA reports the sale of digital assets, including cryptocurrency and NFT sales. Such sales […]
The IRS has updated Form 941 (Employer’s Quarterly Federal Tax Return) and Form 941-X (Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund), along with their respective Instructions, for 2026. These forms are used by employers to report quarterly wages, taxes withheld, and social security and Medicare obligations, and to correct errors on previously […]
The City of Chignik has completed the process to join the Alaska Remote Sellers Sales Tax Commission (ARSSTC). Sellers must begin collection on 6/1/2026 and forms for filing will be updated to include Chignik on 7/1/2026.
Colorado imposes a retail delivery fee on all deliveries by motor vehicle in the state with at least one item of tangible personal property subject to state sales or use tax in the order. The fee amount may be adjusted for inflation each year. For the period of July 2026 to June 2027, the total […]
The IRS has released final rules in the federal register for reporting of tips made tax-exempt by 2025’s One Big Beautiful Bill. These rules provide direction on what tip compensation qualifies for the exemption and how to report the compensation to payees. Briefly, tip compensation is subject to the exemption if it is paid for […]
The IRS has released draft regulations implementing the information reporting threshold changes under the One Big Beautiful Bill Act (OBBBA). The OBBBA raised the general reporting threshold for Forms 1099-MISC, 1099-NEC, W-2, and W-2G from $600 to $2,000, effective for payments made after December 31, 2025, with annual inflation adjustments beginning in 2027. The draft […]
Colorado imposes a Daily Vehicle Rental Fee on motor vehicle rentals 30 days or less and certain car sharing rentals. The rate may adjust for inflation each year. For the period of July 2026 to June 2027, the fee amount will increase to $5.34 from $5.57. Further information concerning the fee may be found here.
Alabama has enacted HB 527, establishing a food sales tax holiday from May 1 through June 30, 2026. During this period, qualifying food items will be exempt from Alabama state sales tax. Eligible items are defined as those that qualify for purchase under the Supplemental Nutrition Assistance Program (SNAP). The full text of HB 527 […]
Indiana Senate Bill 243 (SB 0243), signed into law on March 5, 2026, amends several sections of the Indiana Code concerning taxation. Key provisions include new penny rounding rules, new adjusted gross income deductions, and increased gambling withholding thresholds. The bill introduces a penny phaseout rounding framework under two new code provisions. IC 5-36.5, effective […]
The IRS has released its revised Publication 1099 (General Instructions for Certain Information Returns). This publication provides comprehensive guidance for filing Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, and W-2G with the IRS and furnishing statements to recipients. Most notably, the IRS has retired the Filing Information Returns Electronically (FIRE) system. Beginning tax year […]
The Washington legislature recently enacted Senate Bill 6346 imposing several changes to the sales tax law. Last October, Washington imposed sales tax on custom software, live presentations and a wide range of new services. The new law modifies and clarifies the scope of these services beginning July 1. Specifically, SB 6346: Expands the existing exemption […]
ProductCare, the recycling organization in charge of processing environmental handling fees (EHFs) on household waste products in several Canadian provinces, issued a notice recently that there will be a temporary pause on collecting EHFs in the provinces of Manitoba and Saskatchewan. Members are required to continue reporting, but as a $0 fee. See notice here. […]
SD HB 1245, effective July 1, 2026, allows municipalities to impose a temporary sales tax not exceeding 1% to assist with funding capital improvement projects. Any ordinance must be approved by voters before implementation. More information may be found here.
Effective July 1, 2026, SD HB 1254, allows a sales tax exemption for soil amendments if used in agriculture and 500 pounds or more are sold in a single sale.More information may be found here.
Effective July 1, 2026, SD SB 96, allows counties to enact a 0.5% sales tax pending approval by voters. If approved, the county sales tax revenue is dedicated to assist in reducing county property taxes.More information may be found here.
South Dakota (SD) SB 245, signed by the governor on March 12, 2026, captures revenue from the scheduled state sales tax increase (4.2% to 4.5% in July 2027) and dedicates it to a homeowner property tax reduction fund to help alleviate local property taxes.More information may be found here.