Regulatory Analysis

Louisiana has recently published new guidance regarding sales and use taxes on digital products and services. This guidance provides clarification on the scope of new sales and use taxes imposed in January 2025 under legislative bills HB8 and HB10.

Effective October 1, 2025, the State of Florida will repeal the state sales tax on rent or license fees for the use of real property. The repeal affects a wide range of commercial rental properties, including office and retail spaces, warehouses, and self-storage units. However, this repeal does not apply to parking, docking or storage […]

Rhode Island recently passed legislation which imposes sales tax on short-term parking services. The term is defined to include parking services for less than one month. This will take effect on October 1, 2025. For more detail, please reference Advisory 2025-14 linked here.

Effective January 1, 2026, Colorado HB 1005, eliminates the sales tax vendor fee retailers may retain in connection with remitting and collecting sales tax. Previously, qualifying retailers may have kept a percentage of state sales tax collections each month for administrative costs associated with remitting and collecting sales tax. Further information about the legislation may […]

Localities in Virginia may impose a $0.05 bag fee on each disposable plastic bag provided to customers at check out. Locals need to pass an ordinance to impose such a fee. Richmond, Virginia approved Ordinance 2025-099 to impose a $0.05 bag fee on certain bags at check out, effective January 1, 2026. Further information concerning […]

The town of Clifton, Arizona has adjusted its tax code to establish a tiered use tax rate beginning October 1, 2025. For items $10,000 or less, the use tax rate will be 3%. For items greater than $10,000, the use tax rate will be 2%. Further information regarding this change may be found here.

The city of Maricopa, Arizona enacted an ordinance to increase the general transaction privilege tax rate by 0.50% beginning October 1, 2025. The increase does not apply to certain tax classes, including food for home consumption. Further information may be found here.

Effective September 1, Alabama will exempt qualifying baby supplies, baby formula, maternity clothing, and menstrual hygiene products from state sales and use tax. Further details may be found here.

The Missouri legislature passed HB 594, creating an exemption for diapers, feminine hygiene products and incontinence products. The exemption is set to begin on August 28, 2025. For definitions of each term, please reference the following statute: RSMo § 144.029.

The City of Kake has completed the process to join the Alaska Remote Sellers Sales Tax Commission (ARSSTC). Sellers must begin collection on 9/1/2025 and forms for filing will be updated to include Kake on 10/1/2025.

Effective July 10, 2025, Alaska HB 123 became law without the Governor’s signature. The legislation provides for a reduction in the Vehicle Rental Tax rate from 10% to 9% of the total fees and costs charged for the lease or rental of a passenger vehicle not arranged through a vehicle rental platform under AK Statutes 43.52.020.

New Mexico lawmakers recently passed HB 218, which changed the dates of the annual back to school tax holiday to the last weekend of July. This year, the holiday takes place from July 25, 2025 to July 27, 2025. Certain retail items will be eligible for a tax exemption during this time subject to certain […]

Effective January 1, 2026, Illinois will exempt food for human consumption through a repeal its 1% sales tax. This exemption will not apply to alcoholic beverages, cannabis-infused products, soft drinks, candy, or prepared foods meant for immediate consumption. Coinciding with the repeal, municipalities will have the option to impose their own 1% grocery tax, replacing […]

Beginning January 1, 2026, Illinois will eliminate the 200-transaction threshold for establishing economic nexus for sales tax purposes. Going forward, both remote retailers and marketplace facilitators will be subject to economic nexus rules based solely on whether their cumulative gross receipts from sales to Illinois purchasers exceed $100,000 over the previous 12 months. Remote retailers […]

Massachusetts lawmakers recently set the date for the annual sales tax holiday. The 2025 holiday will take place August 9th and 10th. During the holiday, the state’s 6.25% sales tax is suspended for most retail items priced under $2,500. For more information on the announcement of the annual sales tax holiday in Massachusetts click here.

The Colorado Department of Revenue recently released the July 2025 local sales tax changes. Among the changes were new state-administered districts to supplement funding for related fire and ambulance services in the districts through the levy of sales tax. The following Fire Protection Districts were added: Berthoud FPD Cortez FPD Eagle River FPD Frederick-Firestone FPD […]

In Connecticut, a surcharge is assessed by the Public Utilities Regulatory Authority on all phone lines, including prepaid wireless services, in order to fund E911 services.  Each fiscal year the amount of the surcharge is reviewed.  Pursuant to Public Utilities Regulatory Authority Docket No. 25-01-05, the surcharge has been decreased for prepaid wireless services from $0.73 […]

In Minnesota, the Prepaid Wireless E911, TAM and 988 fees are increasing from a combined fee amount of $0.95 to $0.96 effective July 1, 2025. The fee is comprised of 3 parts as follows: E911 Fee – $0.80 TAM Fee – $0.04 988 Fee – $0.12