Regulatory Analysis
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. […]
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.
Effective January 1, 2026, the state level discount available for timely filed sales and use tax returns in Colorado has been removed. This discount is termed as a “service fee” in Colorado. Please note, this change does not impact local level service fees in Colorado. This change is included in the Colorado Department of Revenue’s […]
Effective January 1, 2026, the Colorado Waste Tire Fee on the sale of new motor vehicle and trailer tires will increase to $2.00 from $0.50.
Earlier this year the Washington state legislature enacted Engrossed Substitute Senate Bill 5801 (Chapter 417, Laws of 2025) changing a number of taxes and fees related to motor vehicles and other forms of transportation. As part of this law the additional 5.9% sales tax imposed on retail car rentals of 30 days or less will […]
The Colorado Department of Revenue published local sales and use tax changes effective January 1, 2026. Changes include rate increases and newly imposed sales taxes in jurisdictions such as Pagosa Springs. More information concerning the January 1, 2026 local changes may be found here.
Earlier this year, Manitoba passed their budget for 2025-2026, which includes provisions to impose the retail sales tax on cloud computing services (e.g. SaaS, IaaS, PaaS). Examples of such services include software subscriptions, data storage services, and remote computer processing services. More information may be found in Bulletin 033.
Effective January 1, 2026, Illinois will exempt food for human consumption from sales tax by repealing the state’s 1% grocery tax. This exemption will not apply to alcoholic beverages, cannabis-infused products, soft drinks, candy, or prepared foods intended for immediate consumption. Coinciding with this repeal, municipalities and counties may impose their own 1% grocery tax […]
The state of Hawaii increases its rental motor vehicle surcharge by $0.50 annually on January 1 of each year. Effective January 1, 2026, Hawaii will increase the surcharge rate from $7.00 per day (or any portion of a day) to $7.50. The scheduled rate increases are slated to end in 2027.
Colorado legislation HB 1154, will replace the 0.1% Telecom Relay Surcharge on prepaid wireless services with a Prepaid Disability Access Fee at a rate of $0.08. Beginning January 1, 2026, the fee will fund telephone services for those with disabilities.
Beginning December 1, 2025, Illinois will implement its PaintCare Recovery Program. The program will impose various fees on the sale of architectural paint in the state. Find out more information here.
Maryland will increase its Tire Recycling Fee from $0.80 to $1.00 per tire. The fee increase will take effect on January 1, 2026. More information may be found here.
Maryland will begin imposing a $5 fee on each new tire sold as a part of new or used vehicle, trailers, farm equipment, similar machinery. The fee will be implemented on January 1, 2026. More information may be found here.
Haines Borough voters recently approved an ordinance granting an annual sales tax exemption period for non-prepared food items from October 1 through March 31, initially beginning January 1, 2026. The exemption applies borough wide. More information may be found here.
In Juneau, voters recently approved Proposition 2. Effective November 20, 2025, essential foods and essential residential utilities will be exempt in the Alaskan local. Proposition 2 was a citizen’s initiative petition to amend Juneau’s sales tax code to create new sales tax exemptions. Specifically, essential food defined by the Food and Nutrition Act of 2008 […]
Earlier this year Washington enacted Engrossed Substitute Senate Bill 5814 (published as Chapter 422, Laws of 2025) which changed the state’s definition of retail sales to include custom software and several newly taxable services. As a result, the retail sales tax and the retailing business and occupation tax will apply to sales of custom software […]