Latest US Sales and Use Tax Updates 2024/25
There have been a number of changes to sales tax regulations in several states across the US in recent months. Here is an overview of those updates.
Illinois
Illinois Direct Pay Permit holders must now conduct an annual review of purchase activity to verify compliance. This review will focus on purchases made during the preceding 12-month period, ensuring accurate tax reporting and compliance with state requirements.
Maine
Beginning January 1, 2025, Maine will impose a sales tax on each payment made by the lessee for leased or rented tangible personal property. This change impacts businesses with leasing agreements and requires adjustments in their sales tax processes.
Michigan
Michigan has clarified that if a non-fungible token (NFT) represents an ownership interest in tangible personal property, the sale of the NFT is considered a taxable sale of tangible personal property. Businesses involved in the NFT marketplace should assess how this ruling affects their tax liabilities.
New Jersey
New Jersey will now exempt the sale of investment metal bullion and investment coins from its sales and use tax. This exemption provides relief to investors and simplifies the tax implications of purchasing precious metals in the state.
Vermont
As of July 1, 2024, Vermont will subject all sales of prewritten computer software to sales and use tax. This includes software purchased on physical storage media, downloaded, or accessed remotely via the internet. Businesses should prepare for potential cost increases and adjust pricing strategies as needed.
Tennessee
The Tennessee Department of Revenue ruled that a contractor’s purchase of piping for a municipal fresh water plant qualifies as industrial machinery, making it exempt from sales and use tax. This exemption underscores the state's commitment to supporting municipal infrastructure projects.
Texas
The Texas Comptroller determined that materials incorporated into the new construction of railroad tracks or roadbeds are essential to locomotive and train operations and are therefore exempt from sales and use tax. This ruling benefits the rail industry and supports infrastructure development.
Washington
Washington has extended, until December 31, 2033, the reduced business and occupation (B&O) tax rate and the sales and use tax exemption for gases and chemicals used in producing semiconductor materials. This move aims to bolster the semiconductor industry and encourage innovation.
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