Effective January 1, 2026, Illinois will eliminate their previous 200 transaction count threshold for remote sellers. Remote sellers hitting or exceeding $100,000 in sales are now mandated to register in the state. Businesses can deregister or defer initial registration regardless of the number of transactions so long as they are under the $100,000 sales threshold in a 12 month period. Given the new threshold, it is important to stay on top of the states you need to get registered in. Sales Tax and More offers many services to help you stay or get compliant in the necessary states.

Read the full update here: https://www.ilga.gov/Legislation/BillStatusDocNum=2755&GAID=18&DocTypeID=HB&LegId=160791&SessionID=114

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From October 1, 2025 to November 15, 2025, Illinois will be expanding their new amnesty period. During this amnesty program, taxpayers will be able to report and remit their taxes from June 30, 2018 to July 1, 2024. Additionally, the Department of Revenue will waive penalties and interest and not seek civil or criminal charges for time covered by the program contingent that the taxpayers pay the taxes due during the amnesty period. Most taxpayers are eligible unless they are involved in an ongoing criminal investigation, civil or criminal litigation specifically pertaining to nonpayment, delinquency, or fraud that’s related to Illinois state taxes.

To learn more about this amnesty period, you can access the full update here: https://www.ilga.gov/Legislation/BillStatusDocNum=2755&GAID=18&DocTypeID=HB&LegId=160791&SessionID=114

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Certain digital goods became taxable in Utah starting on August 1, 2025. Specifically, digital audio-visual works, digital audio works, and digital books will be charged sales tax when they are sold to end users. These goods will be subject to Utah’s state sales tax no matter if they are either downloaded or accessed electronically.

For more information, you can read more here: https://sst.streamlinedsalestax.org/TM/form/14717

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Maryland expands its sales and use tax base to include certain IT services starting on July 1, 2025. This comes after the signing of House Bill 352 on May 20, 2025 by Maryland’s governor. The bill now subjects system software and application software publishing services, computing infrastructure providers, and also data processing, web hosting and associated services to a 3% sales tax. The expansion could affect software and SaaS exemptions currently in place. The 3% will only be applied if the 6% rate is inapplicable.

Read the full update here: https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/legal-publications/technical-bulletins/tb-56.pdf

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Florida implemented a permanent sales tax exemption on items relating to outdoor activities and disaster preparation taking effect on August 1, 2025. In the past, these items were only tax exempt during the state’s tax holiday beginning on July 1. Florida’s House Bill (HB) 7031 now permanently exempts these particular items from sales tax:

- Batteries (specifically AA, AAA, C, D, 6-volt, and 9-volt)

- Bicycle helmets

- Carbon monoxide alarms

- Fire extinguishers

- Ground anchor systems and tie-down kits

- Insect repellent

- Life jackets

- Portable gas or diesel fuel cans (5 gallons or less)

- Portable generators (specifically ones able to produce 10,000 running watts or less)

- Smoke detection devices

- Sunscreen

- Waterproof tarps and other flexible waterproof sheeting (specifically ones that are 1,000 square feet or less)

For more information on this recent exemption, you can read the full update here: https://www.flsenate.gov/PublishedContent/Offices/2024-2026/President/Documents/Historic_Tax_Relief_$1_3_Billion_in_Tax_Savings_for_Families___Businesses_Signed_Into_Law.pdf

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Mississippi decreased their sales tax rate on groceries sales from 7% to 5%, beginning July 1, 2025. The term groceries encompasses any food or drink that is for human consumption and could be bought with food stamps. If it is actually purchased with food stamps, there is no tax. If it is not eligible to be purchased with food stamps, then the full rate of 7% is due. Only items that are eligible to be purchased with food stamps but are purchased without food stamps are subject to the 5%.

Read more about this change on the Mississippi Department of Revenue’s website: https://www.dor.ms.gov/node/16081

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Starting July 1, 2025, Utah’s change to their economic nexus threshold will go into effect. Their previous economic nexus threshold was based on whether you had 200 or more transactions in the state or $100,000 in revenue or gross sales. The amendment to the threshold now makes total gross sales the determining factor for economic nexus. This change will impact both voluntary sellers and marketplace facilitators if they qualify in the previous or current calendar year. Sellers will now be required to pay or collect and remit sales and use tax if their gross revenue surpasses the total of $100,000 from the sales of tangible personal property, products transferred electronically, or storage, use, or consumption services in Utah. For marketplace facilitators, they have to now pay or collect and remit sales and use tax if their sales or sales mediated on behalf of other sellers surpasses $100,000. Sellers can deregister immediately if they were only registered due to the 200 transaction threshold.

For more information, read the full update now: https://le.utah.gov/~2025/bills/static/SB0047.html

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As a reminder effective July 1, 2025, Colorado will decrease their retail delivery fee from $0.29 to $0.28. The enterprises annually determine and set the rates for the upcoming fiscal year, with a statutory maximum increase based on inflation. In 2025, the rates set by each enterprise resulted in a net decrease. As a result, the Retail Delivery Fee rate is decreasing from $0.29 to $0.28, effective July 1, 2025.

Read more at: https://tax.colorado.gov/retail-delivery-fee-rates

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Illinois released answers to some FAQs on rental and lease transactions' taxes, which went into effect on January 1, 2025. Some of the topics were: taxation of certain receipts, taxes on contracts of lease and rentals before January 1, 2025, leases and rentals of computer software, the procedures surrounding payments, the sourcing rules, and more. Read the full list of FAQ topics here: https://tax.illinois.gov/research/publications/pubs/lease-tax-faqs.html

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Financial Crimes Enforcement Network or FinCEN Removed Beneficial Ownership Reporting Requirements for U.S. Companies and U.S. Persons. The Financial Crimes Enforcement Network (FinCEN) is issuing an interim final rule that removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act. In that interim final rule, FinCEN revises the definition of “reporting company” in its implementing regulations to mean only those entities that are formed under the law of a foreign country and that have registered to do business in any U.S. State or Tribal jurisdiction by the filing of a document with a secretary of state or similar office. In summary US companies do not need to comply, and foreign companies do need to comply. 

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On January 1, 2025 Alaska eliminated the 200 separate transaction threshold for remote sellers, leaving only the dollar-based threshold of $100,000. This means that small sellers may deregister if they are below the dollar based threshold of $100,000 as of January1, 2025. In general states say that you must stay registered for 12 months after your nexus ends. This is called trailing nexus. When a state elminates thresholds some make you follow the trailing nexus guidlines while others (like Alaska) let you deregister immediately!

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Pursuant to Am. Sub. H.B. 33 of the 135th Ohio General Assembly, the Commercial Activity Tax (CAT) underwent major changes beginning January 1, 2024.  For tax periods beginning on and after January 1, 2024, the CAT annual minimum tax is eliminated, and the exclusion amount is increased from $1 million to $3 million.  For calendar year 2025 and thereafter, the exclusion amount is increased to $6 million. 

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Sales and use tax on leases and rentals begins Jan 1, 2025 in Illinois. This is a big change, as IL and Maine were the only two states not to tax rentals prior to this. Illinois issued guidance on the sales and use tax that applies to tangible personal property leased from retailers or service providers, which includes information on what and who is subject to the tax, registration requirements, sourcing rules and reporting requirements. Read more about this at: https://tax.illinois.gov/research/publications/bulletins/fy-2025-15.html

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Massachusetts is launching a tax amnesty program on Nov 1, 2024. They have added FAQs to their webpage which you can view here. This program will run for 60 days ending on Dec 30, 2024.  Eligible taxpayers can request a waiver of penalties on outstanding taxes and interest paid during the amnesty period.

• If you have an eligible existing tax liability, you will receive an Amnesty Eligibility Letter. All you will need to submit for your Amnesty Request is your personal information, the Letter ID, and a valid payment method (e.g., bank account information, credit card).

• If you are filing a new return to report a tax due, you will need to complete your return to calculate your amount due. Once completed, you can complete your Amnesty Request using the information from the return. Don’t forget to either e-file or mail your completed return after you submit your Amnesty Request.

• If you are filing an amended return to report an increase in tax, you will need to complete your amended return to calculate your amount due. Once completed, you will need to sign on to your MassTaxConnect account to complete your Amnesty Request using the information from the amended return. Don’t have an account? No problem, it only takes a few minutes to register for MassTaxConnect. Don’t forget to either e-file or mail your amended return after you submit your Amnesty Request.

In general, a VDA is better than an amnesty due to its limited look back period. However, this amnesty has one as well making it a great option for those eligible. If you have any questions or would like assistance with this program and have receive an eligibility letter, please contact us at contact@salestaxandmore.com 

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North Carolina recently repealed their transaction threshold effective July 1, 2024. Session Law 2024-28 was sent to the Governor’s desk on June 28, 2024. On July 1, he signed it and it immediately became effective.

There is no trailing nexus and now the remote seller threshold only includes a monetary threshold of 100k. Read more: https://www.ncdor.gov/sd-24-1-repeal-transaction-thresholdpdf/open

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CO’s retail delivery fee will increase on July 1, 2024. The Department of Revenue makes an adjustment for inflation each year the rate of inflation is positive. The adjustment is the lesser of the actual rate of inflation or 5%. The retail delivery fee rate increases from $0.28 to $0.29 effective July 1, 2024.

For more information: https://tax.colorado.gov/retail-delivery-fee

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On January 1 2024 Indiana elminated their 200 transaction threshold for remote sellers. However, they are still enforcing the 200 transactions for periods prior to 1/1/2024, so if you were over the 200 transactions in 2023 and were registered but not over the $100,000 threshold you can not deregister until 1/1/2025. To read more: https://www.in.gov/dor/business-tax/remote-seller-information/

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We told you that we would let you know about any updates to the retail delivery in MN as we heard them. We are in receipt of some draft language. Here is what we believe based on language put out by the DOR. The actual language may change, but we believe the thought process will remain the same. Effective July 1, 2024, The Minnesota DOR will define "gross receipts" as the total amount received in money, by barter, or by exchange. It will exclude items that are not taxable that are listed separately on an invoice.

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Rhode Island has made a major change to its annual sales tax reconciliation filing requirements for the tax year 2023 and beyond. Sales Tax permit holders are no longer required to submit the annual Sales and Use Tax Reconciliation Return (Form T-204R-Annual). Instead, a new form called Form RI-STR has been introduced, aligning Rhode Island's tax form with neighboring states and allowing taxpayers to reconcile sales periodically throughout the year.

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The following is directly from the Alaska Municipal Sales Tax Program Quarterly News. “All digital goods and services delivered into ARSSTC jurisdictions should be assessed sales tax (following tax-exempt rules for entities). Digital goods and services include the categories listed below.”

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