Regulatory Analysis

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Posted November 9, 2020 by Daniel Kostrzewa
Pennsylvania Considers Face Masks to be Exempt Clothing

On October 29, 2020, Pennsylvania updated its guidance to indicate that both cloth and disposable face masks are clothing and therefore exempt from sales tax. According to Pennsylvania, “face masks (cloth and disposable) are exempt from Pennsylvania sales tax. Prior to the COVID-19 pandemic, masks sold at retail were typically subject to Pennsylvania sales tax. […]

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Posted September 11, 2020 by Charles Maniace
SST and CSP’s Ink New 3 Year Contract

On August 31, 2020, the 24 member states of the Streamlined Sales Tax Governing Board met in special session to consider a proposed new contract with those tax technology companies holding the designation of Certified Service Provider (CSP’s), including Sovos. The proposed contract was voted on favorably, with 23 states voting in favor and 1 […]

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Posted August 5, 2020 by Ramón Frias
Puerto Rico Allows Cash-Based Sales Tax Compliance for Construction Businesses

The Puerto Rico Treasury (Hacienda) released Administrative Determination 20-19 allowing certain businesses to report and pay sales tax, using the cash method. Specifically, those taxpayers with 80% or more of annual revenue stemming from construction activities (as measured over the last 3 years) will now be able to report and remit sales tax based on […]

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Posted August 5, 2020 by Alex Koral
Louisiana Publishes Sales Tax Guidance for Direct Wine Shippers

The Louisiana Department of Revenue recently issued a notice regarding the application of new economic nexus rules to Direct Wine Shippers. Under the state’s existing direct shipping laws, any licensed winery, wholesaler, or retailer shipping wine into the state is required to collect and remit only the state tax. However, now any Direct Wine Shipper […]

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Posted July 14, 2020 by Alex Koral
Colorado Preparing New Tax Filing Portal

Colorado is in the process of developing a new system to manage the collection of state sales tax, local tax in all state-administered localities, as well as local tax in select home rule cities. The new system, which is supported by a company called Munirevs, has yet to be publicly released. However, it promises to […]

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Posted July 14, 2020 by Charles Maniace
Utah Announces Mandatory E-Filing For Sales Tax

In a recent note disseminated by the Utah State Tax Commission, they announced effective for returns due October 31, 2020 or later, electronic filing will be required. This applies to all sales tax returns, schedules, and related filings including monthly returns and quarterly/annual returns due after October 31. Returns can continue to be filed electronically […]

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Posted July 2, 2020 by Alex Koral
Tennessee Lowers Nexus Thresholds

Tennessee Governor Bill Lee signed legislation on June 30, 2020 adjusting the state’s sales thresholds for economic nexus. Effective October 1, 2020, remote sellers making in excess of $100,000 in annual sales into the state will be required to collect and remit sales tax, which is a change from the previous threshold of $500,000 in […]

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Posted July 2, 2020 by Alex Samuel
North Carolina Modifies Marketplace Facilitator Legislation

North Carolina enacted legislation to remove economic thresholds applied to marketplace facilitators. Previously, marketplace facilitators were required to collect and remit sales tax on their marketplace-facilitated sales if they had gross sales in excess of $200,000 or 200 or more separate transactions in the previous calendar year. Effective July 1, 2020, all marketplace facilitators are […]

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Posted July 1, 2020 by Andrew Decker
New Rules for Remote Sellers in Louisiana

Beginning July 1, remote sellers making sales into Louisiana must register with the Louisiana Sales and Use Tax Commission for Remote Sellers (“the Commission”) in order to be compliant with new requirements to collect, remit and report state and local sales tax. For a full explanation of this update, read our blog here.

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Posted June 26, 2020 by Erik Wallin
Massachusetts Sales Tax Holiday Set for August 29-30

Massachusetts Governor Charlie Baker recently announced that the 2020 Sales Tax Holiday will take place on August 29 and 30. By way of a quick recap, the holiday exemption applies to most retail items with a sales price up to $2,500 purchased for personal consumption. Further details regarding the sales tax holiday can be found here.

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Posted May 29, 2020 by Charles Maniace
SD and TX Both Announce Exemption for Internet Access

In recent days, the South Dakota and Texas Departments of Revenue announced that internet access charges would become exempt from sales tax effective July 1, 2020. While states are struggling with massive budget shortfalls as a result of the COVID-19 pandemic, this particular exemption is compelled by an earlier change to the US Internet Tax […]

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Posted May 21, 2020 by Matthew Gonnella
Louisiana Announces Effective Date for Remote Seller Registration and Collection of state and local sales tax

Louisiana announced that remote sellers selling into the state are required to register with the Louisiana Sales and Use tax Commission for Remote Sellers by July 31, 2020 or 30 calendar days after meeting Louisiana’s economic nexus threshold standards. Remote sellers will begin collecting state and local sales and use tax at standard rates once […]

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Posted April 14, 2020 by Andrew Decker
Washington Exempts Feminine Hygiene Products

Washington State recently enacted new legislation which would exempt feminine hygiene products from the retail sales tax. Washington is the latest state to exempt such products in recent years, following in the footsteps of states such as New York, Florida, and Utah who have also recently exempted such products. The new law takes effect beginning July […]

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Posted April 2, 2020 by Alex Samuel
Tennessee Enacts Marketplace Facilitator Legislation

Tennessee recently enacted legislation requiring marketplace facilitators that meet certain thresholds to collect tax on behalf of their marketplace sellers. Marketplace facilitators must collect tax when they facilitate total sales of more than $500,000 to consumers in Tennessee during the previous 12 months. Additionally, marketplace facilitators must source sales of tangible personal property on their […]

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Posted March 23, 2020 by Alex Samuel
Kodiak, Alaska Enacts 1-Day Optional Sales Tax Holiday

The City of Kodiak, Alaska has enacted a one-day annual sales tax holiday. Under the terms of the Kodiak City Code, the sales tax holiday  will take place on the first Saturday in March each year. For 2020, the holiday occurred on March 7th. The holiday applies to all sales and rentals of tangible personal […]

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Posted March 20, 2020 by Matthew Gonnella
Puerto Rico Declares Emergency Sales Tax Holiday

In response to the COVID-19 crisis, Puerto Rico declared an emergency sales tax holiday on “Items of First Necessity” from Monday, March 23, 2020 until Thursday, April 30, 2020. During this period, the Puerto Rico sales tax will not apply to the following items: hand sanitizers, personal disinfectants, tissues, masks, household cleaning supplies, gloves, pain […]

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Posted February 27, 2020 by Alex Samuel
Alaska Cities Enact Uniform Remote Seller Sale Tax Code

Eight local governments in Alaska have enacted ordinances implementing the Alaska Remote Seller Sales Tax Commission’s Uniform Sales Tax Code. They include: Juneau, Wasilla, Kenai Peninsula Borough, Kenai, Seward, Soldotna, Homer and Seldovia. Remote sellers and marketplace facilitators doing business in these locations are required to collect and remit sales tax if their statewide gross […]

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Posted February 10, 2020 by Erik Wallin
Massachusetts Governor Proposes Sales Tax Modernization Initiatives

Massachusetts Governor Charlie Baker’s recent FY2021 budget proposal includes sections aimed at modernizing and improving the integrity of sales tax collection in the Bay State. The proposal takes a two-phased approach to modernization in order to improve the speed of current collection and remittance methods. Phase 1: Businesses will be required to remit collections from […]

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