KBF Sales and Use Tax Newsletter – 1st Quarter 2024

KBF’s quarterly newsletter updates clients on sales and use tax news, developments, and trends from around the country.

In Alaska, the seasonal sales tax has been reinstated, making the tax rate 6% from April 1 to September 30. Meanwhile, remote retailers in Colorado that do not collect sales tax and haven’t met the economic nexus threshold must now notify Colorado purchasers of their use tax responsibility.

Both Illinois and Ohio determined that federal clean vehicle credits applied towards the purchase price of electric vehicles are included in the taxable selling price.

Indiana and Wyoming eliminated the transaction threshold from economic nexus determinations. This means that remote sellers will create nexus if their gross revenue from sales into the state exceeds $100,000.

Florida clarified that merchants are responsible for sales and use tax when a third-party delivery company does not collect. Minnesota issued new guidance on a retail delivery fee that applies to transactions where charges for taxable goods equal or exceed $100.

South Carolina found that sales and rentals of digital textbooks are exempt from sales and use tax.

Lastly, South Dakota added “any product transferred electronically” to the definition of seller in the state’s sales tax statutes, and a Washington state court found that Amazon sellers are responsible for sales tax and business and occupation tax on sales made through Amazon’s Fulfillment by Amazon program.
Read more about these updates by downloading the file here. Please note that this is only an overview. Consult with your KBF service team, or find a KBF Tax professional here, for specific guidance.