KBF Sales and Use Tax Newsletter – 4th Quarter 2024

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

California extended the sales and use tax filing deadline for businesses in Los Angeles County impacted by wildfires. Illinois updated its destination sourcing rules for out-of-state sales and Chicago increased its personal property lease tax. Louisiana now taxes most digital products. Michigan clarified the taxability of non-fungible tokens (NFTs), taxing those tied to tangible property while purely digital ones are exempt from tax.

Missouri and Washington State narrowed their manufacturing exemptions, with Missouri excluding custom services and Washington excluding packaging machinery. Nebraska implemented new “Good Life Districts” with varying alternate tax rates. Nevada exempted diapers from sales tax. New York clarified that optional services for prewritten software are not taxable if separately stated. Lastly, Pennsylvania provided further guidance on the taxability of software and digital goods.

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.