KBF Sales and Use Tax Newsletter – 3rd Quarter 2024

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

Remote Seller Nexus Thresholds

Several states simplified their remote seller nexus thresholds. Alaska and North Carolina eliminated transaction-based thresholds, focusing solely on gross sales exceeding $100,000. This means that remote sellers in these states must now register and collect sales tax if their annual sales surpass this amount, regardless of the number of transactions.

Expanded Sales Tax Base

Illinois expanded its sales tax base by including lease transactions, which were previously exempt. Additionally, the state capped vendor discounts at $1,000 per month. Illinois also updated its destination sourcing rules, which will impact how retailers with in-state businesses collect sales tax on out-of-state sales.

Tax Relief and Clarifications

Massachusetts offered some relief to taxpayers with a tax amnesty program from November 1 to December 30, 2024. New Jersey clarified that electric vehicle charging is a taxable service. Tennessee adopted Streamlined Sales Tax sourcing rules, aligning its sales tax laws with other states. Virginia exempted testing equipment used in the manufacturing process from sales tax.

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.