Regulatory Analysis
On May 12, 2026, Maryland enacted House Bill 898. The legislation provides an exemption for certain data and information technology (IT) services, software publishing services, digital codes, and digital products if both the vendor and the buyer are members of the same affiliated group within the meaning of §1504 of the Internal Revenue Code. The […]
Massachusetts recently published Directive 26-1, which provides guidance on how sales tax must be calculated following the elimination of the penny. With the U.S. Treasury minting its last penny on November 12, 2025, vendors have begun rounding cash transactions to the nearest nickel. However, vendors are required to calculate and remit sales tax based on […]
Effective May 1, 2026, Williamsburg County, South Carolina is imposing a 1% Capital Projects Tax. Certain food sales are exempted from the tax. You may find more information here.
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 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 […]
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 […]
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 […]
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.
Manitoba recently released their fiscal 2026 budget, which, among other provisions, contains several provisions that will affect the Retail Sales Tax. More specifically, beginning on July 1, 2026, the RST exemption on basic groceries will be extended to apply to additional food and beverages for human consumption sold by grocery stores (such as ready-to-eat prepared […]
Beginning April 1, 2026, Maryland will implement a PaintCare Recovery Program. The program will impose various fees on the sale of architectural paint in the state to fund recycling and disposal. More information may be found here.
The Rhode Island Department of Revenue recently found that sales of access to online databases should be subject to sales and use tax as this is considered the sale of vender-hosted prewritten computer software. In the decision, the Department noted that “searchability” (i.e., the ability to research/retrieve information) from a database is a main factor […]
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.