KBF Sales and Use Tax Newsletter – 1st Quarter 2025

Here are recent court rulings, legislation, and administrative changes that have significantly impacted sales tax landscapes across the country.

In Indiana, online video game subscriptions, in-game items, and virtual currency are now officially not taxable. Meanwhile, Maryland is introducing a new 3% sales tax on technology-related services, such as cloud storage and IT consulting, effective July 1, 2025.

South Dakota is offering a 30-day grace period for remote seller registration starting July 1, 2025, but will suspend the tax collection allowance credit until mid-2028. As of April 2, 2025, Texas has broadened the definition of taxable data processing services to include computerized data manipulation. Additionally, the state has clarified that imported goods in bonded warehouses become taxable only upon removal.

Utah is repealing its 200-transaction economic nexus threshold on July 1, 2025, now requiring collection only when sales exceed $100,000. The state also enacted a sales and use tax exemption for energy storage equipment manufacturers. In Washington, surcharges (including tariffs and credit card fees) must now be included in the selling price for tax calculations. Lastly, Wyoming has extended its manufacturing sales and use tax exemption until December 31, 2042.

Download the file here to read more about these updates. Please note that this is only an overview. For specific guidance, consult with your KBF service team or find a KBF tax professional here.