News & Analysis as of

State and Local Government Sales Tax

Husch Blackwell LLP

Minnesota Adult Use Cannabis Updates

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Minnesota Adult Use Cannabis Update - We assisted multiple clients in completing and submitting their adult-use cannabis license applications to the Office of Cannabis Management (“OCM”), and we continue to monitor how and...more

Husch Blackwell LLP

Kansas Enacts 20-Year Sales Tax Exemption for Data Centers

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As part of a continuing trend, Kansas Governor Laura Kelly has signed SB98 into law, becoming the latest state to enact a sales tax exemption for qualified data centers. Many states, including neighboring Missouri (see RSMo....more

Eversheds Sutherland (US) LLP

The worst of the worst: Washington expands its B&O and sales taxes

On May 20, 2025, the last day for bill signing, Washington Governor Ferguson signed two key tax bills that expand the sales tax to include additional services and increase the rates of the (awful) business and occupation...more

Maynard Nexsen

Granting Local Governments Authority Over Sales Tax Exemptions

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In a significant development for local governance and fiscal autonomy, Alabama Governor Kay Ivey recently signed House Bill 191 into law. This legislation empowers municipalities and counties to exercise greater control over...more

McDermott Will & Emery

Washington’s Digital Ad Tax: A Lawsuit Waiting To Happen?

On April 27, 2025, the Washington Legislature delivered to Governor Bob Ferguson’s desk Senate Bill (SB) 5814, a sweeping tax bill that, among other changes, would expand the state’s retail sales and use tax to sales of...more

Freeman Law

Texas Sales and Use Tax for Exempt Entities – Part 1

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I’ve previously posted about various Texas sales and use tax rules – general rules, exceptions, and exemptions applied to both taxable services and tangible personal property. However for certain entities—specifically,...more

Freeman Law

Texas 89th Legislative Regular Session | Proposals Part 2

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The fun continues with the 89th Regular Session of the Texas Legislature, with several new proposed House Bills that relate to the imposition of Texas taxes. Of the over 100 proposals put forth so far, we’re keeping a closer...more

Kilpatrick

5 Key Takeaways | The Latest Twists and Challenges in Sales Tax, Use Tax, and Income Tax Laws

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Kilpatrick’s Jordan Goodman recently joined other thought leaders at the ABA-IPT Advanced State Income, Advanced Sales/Use, and Advanced Property Tax Seminar in New Orleans where he co-presented on the latest twists in sales...more

K&L Gates LLP

The Inside Basis: Post-Wayfair Sales Tax Compliance and Exposure

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K&L Gates Tax partner Will LeDoux joins Randy Clark for a discussion of the 2018 Supreme Court case South Dakota v. Wayfair and its impact on sales tax nexus and subsequent transaction considerations....more

Adams & Reese

Does a Drink Menu Have to Show Taxes in Tennessee?

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Lots of folks have been asking of late, “Do I have to show taxes in drink prices?” No. The law gives taxpayers two options....more

Nelson Mullins Riley & Scarborough LLP

Gold Dome Report - Legislative Day 21 - February 2025

With fewer fireworks than many expected, Governor Brian Kemp’s comprehensive tort reform legislation achieved passage by a comfortable margin in the Georgia State Senate on Friday. Garnering a 33-21 vote mostly along party...more

Rivkin Radler LLP

New York Sales Tax: When a Responsible Person Acts Irresponsibly

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Late last year, the Office of the State Comptroller (the “OSC”) estimated that sales and use tax receipts would increase by 2.3% in the SFY 2024-2025. The OSC also projected that collections from sales and use taxes would...more

Cozen O'Connor

Illinois Insights: An update from Cozen O'Connor (2/12)

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Civic Federation Says Illinois Should Extend Sales Tax to Services to Help Bridge $3B Budget Deficit - “Illinois should extend its sales tax to services like haircuts, dry cleaning and plumbing, the nonpartisan Civic...more

Lowndes

Governor DeSantis Aims to Eliminate Florida Commercial Rent Sales Tax by 2027

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As part of the proposed $115.6 billion state budget for fiscal year 2025-26, Governor DeSantis has outlined a plan to eliminate Florida's longstanding commercial rent sales tax. This proposal continues Florida's tax reduction...more

Husch Blackwell LLP

Indiana Ruling Confirms Software as a Service Is Not Taxable

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As digital products and services continue to proliferate, states have begun to address the sales tax implications of sales of Software as a Service (SaaS) in a variety of ways. While a few states have clearly addressed how...more

DLA Piper

United States - VAT: States Searching for Uniform Solution to Tax Digital Products - Monthly Indirect Tax Alert – January 2025

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Digital goods are currently taxed in 31 states. The large market states where such products and services are generally not subject to tax, include California, Florida, Illinois, Massachusetts, New York and Virginia....more

Womble Bond Dickinson

Recap of 2024 Arizona Tax Developments: No More City Sales Tax on Residential Rentals!

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Beginning January 1, 2025, Arizona lessors will no longer be required to collect and remit city Transaction Privilege Tax (TPT) on residential rentals. Senate Bill 1131, Chapter 204, Laws 2023 amended Ariz. Rev. Stat. Ann. §...more

Freeman Law

Texas Sales and Use Tax Nexus

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I discussed Texas franchise tax nexus in a prior post, which can be found here. However, there is a different (albeit similar) set of rules for Texas sales and use tax nexus. As with Texas franchise tax nexus, a business...more

Vicente LLP

Hemp-Derived Cannabinoid Markets: Using Tax Data to Assess Growth in Louisiana, Minnesota and Tennessee

Vicente LLP on

With 2024 behind us and new state legislative sessions ahead, it is a perfect time to discuss one of the most frequently asked questions received by the Vicente Economics and Research Department: How large is the intoxicating...more

Morgan Lewis

Qualified Data Center Purchases Now Eligible for Massachusetts Sales and Use Tax Exemption

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As part of a broad economic development bill recently passed by the Massachusetts Legislature and signed into law by Governor Maura Healey, the owner or operator of a qualified data center may now apply for a sales tax...more

Kilpatrick

5 Key Takeaways | State Tax Litigation

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Kilpatrick partner Jordan Goodman recently participated in a presentation on state tax litigation at the 31st Annual Paul J. Hartman State and Local Tax Forum in Nashville, Tennessee. * The opinions expressed are those of...more

Faegre Drinker Biddle & Reath LLP

Minnesota’s November 2024 Budget and Economic Forecast for 2026-27 Biennium

What Is It and Why Does It Matter? The Minnesota Department of Management and Budget (MMB) prepares formal forecasts of state revenues and expenditures in November and February each year, which policymakers use to set the...more

Pillsbury - SeeSalt Blog

California Imposes Further Disclosure Requirements for Local Sales Tax Sharing Agreements

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On September 28, 2024, California enacted Assembly Bill 2854, which imposes new disclosure requirements on local agencies (i.e., chartered or general law cities and counties) that have entered into local sales tax sharing...more

Freeman Law

Texas Comptroller Issues Private Letter Ruling Finding Exempt Contract

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In Private Letter Ruling No. 20240130142914, STAR Accession No. 202407026L (July 26, 2024), the Texas Comptroller illustrated the type of analysis used to determine whether a contract for the improvement of realty is an...more

Burr & Forman

Important Update: Florida Sales Tax Reduction on Commercial Leases

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As of June 1, 2024, the State of Florida reduced the state sales tax rate on commercial real property lease payments from 4.5% to 2%. All commercial leases with an occupancy period that started on or after June 1, 2024 will...more

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