News

The Virginia Department of Taxation has clarified that testing equipment used during the manufacturing process is exempt from sales tax. This exemption applies to equipment used to test products before they are completed, such as before packaging and labeling. However, testing equipment used on finished products remains subject to sales tax. Additionally, equipment used solely…

Effective July 1, 2024, the Tennessee Legislature adopted the Streamlined Sales Tax sourcing rules for a retail sale of a product from outside of Tennessee into Tennessee. Sales are generally sourced to the location where the goods or services are delivered or used. Key changes include: Destination-Based Sourcing: Most sales of tangible personal property are…

Effective July 1, 2024, the North Carolina Department of Revenue removed the number of transactions as a factor in determining economic nexus in the state. Remote sellers exceeding $100,000 in gross sales will need to register and remit sales tax to the Department of Revenue. Previously, remote sellers had to meet either the $100,000 gross…

The New Jersey Division of Taxation issued guidance regarding the taxability of charging an electric vehicle. Charging an electric vehicle is considered a taxable maintenance or service to tangible personal property. This is the case whether or not the purchaser is charged a flat fee or if the purchaser is charged for exact usage via…

Massachusetts will hold a tax amnesty program from November 1, 2024, to December 30, 2024, during which time it will waive most penalties for eligible taxpayers who file outstanding returns and pay tax and interest owed for tax periods with returns due by December 31, 2024. To qualify, taxpayers must submit an Amnesty Request through…

Effective January 1, 2025, retailers who have a place of business in Illinois and sell personal property from a location outside Illinois will be required to collect state and local taxes at the location where the property is shipped or delivered. Previously, retailers that maintained a business in Illinois and shipped orders from outside the…

Effective January 1, 2025, the sales tax vendor discount will be capped at $1,000 per month. The discount is provided to taxpayers that file and pay their vendor’s use tax on time. Previously, there was no cap on the discount. This change aims to reduce the compensation given to businesses for the administrative burden of…

Effective January 1, 2025, Illinois will begin taxing lease transactions. Prior to January 1, 2025, personal property was subject to tax at the time of purchase instead of during a lease term. Equipment purchased with the intention to re-lease to eventual clients will now be exempt from sales tax. Additionally, property subject to Chicago’s personal…

Effective January 1, 2025, the Alaska Remote Seller Sales Tax Commission will no longer use the number of transactions as a factor in determining economic nexus in the state. Remote sellers exceeding $100,000 in gross sales will need to register and remit sales tax to the Commission. Previously, remote sellers had to meet both a…

KBF’s quarterly newsletter updates clients on state and local income/franchise tax news, developments, and trends. Please note that this information is for discussion purposes only and does not constitute specific tax advice. Here are some important updates: District of Columbia The District will transition from the “Joyce” method to the “Finnigan” method of apportionment for…