Are you making sales tax mistakes? 🤔

Happy spring, sales tax nerds! 👋

We’re here to help you start the new season right with the latest sales tax news. Plus, we’ll also explore common sales tax mistakes companies make and answer a question from you.

Let’s get started.

SALES TAX NEWS

1️⃣ Alabama lawmakers are voting on a bill that would reduce the state's sales tax on groceries from 3% to 2%, with the change set to take effect in September 2025 if passed. This follows a previous reduction in 2023, when the rate was lowered from 4% to 3%.

2️⃣ A new South Dakota law states that remote sellers and marketplace providers that meet the state’s tax thresholds must register and collect sales tax by the first day of the first full month, starting at least 30 days after they qualify by crossing the threshold.

3️⃣ Idaho announced that, effective July 1, 2025, certain small sellers whose gross receipts do not exceed $5,000 yearly will be exempt from collecting and remitting sales and use tax. To qualify for the exemption, small sellers in Idaho cannot have a permanent store, office, or warehouse if they expect to exceed the sales threshold. It does not apply to partnerships, corporations, or LLCs; certain sales are excluded.

4️⃣ Ohio's new House Bill 315 shifts the responsibility for collecting sales tax on goods from delivery companies back to sellers (like restaurants or retailers), while delivery companies will still collect tax on delivery fees. These changes could affect business pricing, encourage direct sales over third-party platforms, and make compliance simpler for delivery services.

5️⃣ The Virginia Department of Taxation is introducing the new ST-1 sales tax form, which will replace multiple forms (ST-9, ST-8, ST-7, and ST-6) and consolidate their common elements into a single return. The changes are in place for the April 2025 reporting period, with monthly filers seeing changes when they file April returns in May and quarterly filers seeing changes when they file Quarter 2 returns in July.

6️⃣ Maine Revenue Services has clarified that only retailers without a resale certificate and with less than $3,000 in annual sales can claim the "Credit for Sales Tax Paid on Goods Purchased for Resale." Retailers with an active resale certificate must use it at purchase to avoid paying sales tax and cannot claim the credit; if they mistakenly pay tax, they should apply for a refund through the Maine Tax Portal.

7️⃣ In North Dakota, the Office of State Tax Commissioner has updated its Voluntary Disclosure Program (VDP), allowing taxpayers to resolve outstanding income, withholding, and sales tax liabilities. The updated guidance discusses that taxpayers can remain anonymous throughout the disclosure process until a final agreement is reached.

8️⃣ The Illinois Department of Revenue released a clarification stating that wheelchair ramps, stair lifts, and grab bars do not qualify for the reduced 1% state sales tax rate applied to medical appliances.

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COMMON MISTAKES TO AVOID WITH SALES TAX 🤔

Paying sales tax comes with the territory if you’re running a business. And not complying with state laws can have serious financial consequences that can harm your company.

Some of the most common mistakes that are made include:

1. Collecting and not registering or remitting sales tax

2. Not filing on time and accruing principal and interest

3. Bad or incomplete customer data

Now, these aren’t all the mistakes you must watch out for. There’s plenty more, along with advice on how to help your business stay compliant.

Get the full scoop with sales tax expert Matt Grattan here →

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UPCOMING EVENTS 🎉

YOUR QUESTIONS, ANSWERED!

Q (Gretchen): How often should I file my returns?

A: Most states will assign you either a monthly, quarterly, or annual filing frequency. The more sales volume you have in a state, the more often that state will want you to file a sales tax return.

Learn more about filing sales tax →

Thanks for reading along.

I’ll be back next month with more sales tax shenanigans.

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Until next time’s 🗑 …

Rohit & the Zamp team