Sales Tax Policy Changes

The New York Department of Taxation and Finance has updated its guidance on the waste tire management and recycling fee to reflect previously enacted legislation.

Extension: The fee has been extended through December 31, 2027.

Expansion of Collection Requirement (effective September 1, 2025): Tire services must collect the fee not only on in-person sales but also on mail-order, phone-order, and Internet retail sales of new tires delivered within New York. A tire service that installs new tires it did not sell must collect the $2.50 fee per tire, unless the purchaser can show proof that the fee was already paid to the original seller.

Administrative Cost Recovery: Tire services that maintain a physical retail location in New York State may retain $0.25 per tire from fees collected on all new tire sales.

Read more here: https://www.tax.ny.gov/bus/tire/wtm.htm

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

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

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

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

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

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

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

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

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