Regulatory Analysis

Posted December 5, 2022 by David Armas
Kentucky Extends Sales and Use Taxes to Additional Services

In 2022, Kentucky enacted House Bill 8 extending the state’s sales and use tax to 35 additional services. Effective January 1, 2023, the list of newly taxable services include lapidary services, personal training, parking services, as well as marketing. The full list of newly taxable services can be found here.

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Posted December 5, 2022 by David Armas
Connecticut Expands Bottle Deposit Fee Applicability

Due to changes in Public Act No. 21-58, Connecticut is updating and expanding the applicability of their Bottle Deposit effective January 1, 2023. For the purposes of the Bottle Deposit, “carbonated beverages” will now include hard seltzers and ciders. Additionally, “noncarbonated beverages” will include plant water, juice, juice drinks, tea, coffee, kombucha, plant infused drinks, […]

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Posted December 5, 2022 by David Armas
Virginia Exempts Food for Home Consumption and Essential Personal Hygiene Products

The state of Virginia has exempted food for human consumption and essential personal hygiene products from state sales tax. Previously, products fitting these descriptions were subject to a reduced rate of 1.5%. Beginning on January 1, 2023, these products will be exempt from state sales tax, but may still be subject to a 1% local […]

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Posted November 30, 2022 by Andrew Decker
End of New York Fuel Tax Holiday

Since June, New York has implemented a Fuel Tax Holiday. This holiday exempted sales of motor fuel and diesel motor fuel from New York state sales and use tax and suspended the prepaid sales tax and several fuel excise taxes. The exemption also extended to the Metropolitan Commuter Transportation District’s sales and use taxes. The […]

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Posted November 16, 2022 by Bradley Feimer
Colorado Carryout Bag Fee Effective January 1, 2023

Enacted July 6, 2021, HB 1162 establishes a $0.10 “carryout bag fee” in the state of Colorado. The fee applies to paper bags as well as single-use plastic carryout bags provided at the point of sale of certain stores effective January 1, 2023. Locals may establish a higher fee by ordinance or resolution beginning July […]

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Posted November 11, 2022 by Bradley Feimer
Colorado: City of Lone Tree Temporary Sales Tax Reduction

The Lone Tree City Council approved a temporary sales and use tax rate reduction of 0.5% for the period of December 1, 2022, through January 1, 2023. During the mentioned period, the rate is reduced from 2.8125% to 2.3125%. The Lone Tree business tax page may be found here.

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Posted November 4, 2022 by Andrew Decker
New York Diaper Exemption Scheduled to Take Effect on December 1

Over the summer New York passed the “Diaper Initiative Affordability for Parents and Elderly Remedy (DIAPER) Act” fully exempting sales of diapers from state and local sales taxes. This new exemption is set to take effect on December 1, 2022. The new exemption applies to both children’s and adult diapers as well as to both […]

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Posted November 2, 2022 by Bradley Feimer
Alaska: City of Galena Joins Alaska Remote Seller Sales Tax Commission

The City of Galena has completed the process to fully participate in the Alaska Remote Sellers Sales Tax Commission (ARSSTC). Collection is effective 12/1/2022 and filings will be updated to include Galena on 1/1/2023. More information on the ARSSTC may be found here.

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Posted October 11, 2022 by David Armas
Kentucky Enacts New Amnesty Period

Kentucky recently enacted HB 8 which provides for a new amnesty period from October 1 to November 29, 2022. During this period, amnesty is available for sales which took place between October 1, 2011, to December 21, 2021 and will apply to most tax types, as well as associated penalties, fees, and interest collected by […]

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Posted October 3, 2022 by Bradley Feimer
Skagway, Alaska Approves Local Sales Tax Holiday

The Municipality of Skagway passed a resolution declaring the period of October 1, 2022, through March 31, 2023, as a sales tax holiday for local purchases. The sales tax holiday applies to all retail sales which physically occur within the local and is not applicable to remote sellers. The resolution may be found here.

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Posted October 3, 2022 by Bradley Feimer
Sitka, Alaska Approves Sales Tax Free Days

The City and Borough of Sitka Assembly has approved a resolution providing November 25th & November 26th, 2022. as sales tax free days. This holiday applies to all sales made within the City and Borough, except any sale of fuel, alcoholic beverages, tobacco products, marijuana, and any sale which is part of a continuing obligation […]

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Posted September 23, 2022 by David Armas
Puerto Rico Enacts Emergency Sales Tax Holiday

As a result of Hurricane Fiona, Puerto Rico has declared a state of emergency through Executive Order No. OE-2022-045. In response to this, the Treasury Department issued Administrative Declaration 22-07 which provides for a temporary exemption from the sales and use tax on “prepared foods”, “candies”, “carbonated beverages”, and “pastries”. The exemption period will begin […]

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Posted September 21, 2022 by David Armas
New Jersey Excludes Sign Installation from Capital Improvement Exemption

New Jersey recently enacted P.L. 2022, c. 97 which excludes the installation of signs from the existing capital improvement sales tax exemption. Sign installers must charge sales tax to their customers on the installation of all signs beginning October 1, 2022. However, the new law allows sign installers to purchase signs and materials for use […]

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Posted August 30, 2022 by Bradley Feimer
Alaska: Ketchikan City Seasonal Sales Tax Rate Changes

The Ketchikan City Council recently approved ordinance No. 22-1949. The ordinance establishes a seasonal tax rate of 5.5%, from April 1 through September 30, on all retail sales, services, and rents subject to sales tax. Additionally, it lowers the tax rate to 3% for the period of October 1 through March 31. The rate changes […]

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Posted August 24, 2022 by Bradley Feimer
Colorado Exempts Feminine Hygiene and Incontinence Products Effective January 1, 2023

The State of Colorado recently approved HB 1055. This bill exempts “period products”, diapers and incontinence products from sales and use tax effective January 1, 2023. For the purposes of the new exemption, “incontinence products and diapers” means absorbent cloth or disposable products worn by humans and “period products” means consumer products used to manage […]

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Posted August 18, 2022 by Erik Wallin
Texas Court Rules in Favor of Local Government Over Sales Tax Sourcing Change

Texas Tax Rule 3.334 modified to the definition of “place of business” as it applies to local sales and use tax sourcing. It would have required that sales personnel be present at a location for it to be considered a “place of business” for sales tax purposes. If the location only housed a computer server, […]

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Posted August 18, 2022 by David Armas
Virginia Exempts Food, Diapers, and Feminine Hygiene Products

Virginia recently passed House Bill 90 which will exempt food purchased for human consumption and essential personal hygiene products beginning January 1, 2023. Food purchased for human consumption does not include alcohol, seeds and plants which produce food, or food sold by any retail establishment where the gross receipts derived from the sale of prepared […]

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Posted August 18, 2022 by Radhika Akhil
Nebraska Expands List of “Home Medical Supplies”

Nebraska recently updated its State Taxability Matrix with the Streamlined Sales Tax Governing Board to include a broader range of items which are considered exempt “home medical supplies.” Home medical supplies are defined as “supplies primarily and customarily used to serve a medical purpose which are appropriate for use in the home and are generally […]

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