Change is in the air...⛄❄

Welcome back, trash talkers.

2025 is officially here, and what better way to kick things off than with some sales tax facts? 😉

Today’s trash includes (1) the latest sales tax news, (2) a look at 2024 wrapped, and (3) a question from you.

SALES TAX NEWS

1️⃣ In its “2025 State Tax Competitiveness Index Ranks and Tax Components Ranks,” the Tax Foundation found that Washington, Alabama, Louisiana, Tennessee, and California are the worst states for 2025 when it comes to sales tax.

2️⃣ In Illinois, a man was sentenced to four years in prison, after a long-term sales tax investigation. The case’s completion uncovered over $104 million in underreported gross receipts, which is the largest amount ever discovered during a sales tax evasion investigation in Illinois history.

3️⃣ For the 2025 fiscal legislative season, Louisiana lawmakers will build on an opportunity to address outstanding issues within the corporate and sales tax codes after a special session in November.

4️⃣ In Illinois, certain retailers will be responsible for destination-based sourcing for sales tax purposes effective January 1, 2025. This means that sellers who maintain a place of business in the state and sell tangible personal goods from location(s) outside Illinois will be required to collect state and local taxes at the location where it is shipped or delivered.

5️⃣ New Jersey has introduced legislation that would rid the state of the transaction nexus requirement.

6️⃣ The City of Detroit announced it will soon give Detroit residents the option to pay taxes and other city fees using cryptocurrency through a platform managed by PayPal.

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YOUR 2024 SALES TAX REVIEW 👇

It’s no secret that sales tax can sneak up on you. In fact, laws and regulations regularly change and it can be hard to keep up with. 2024 was no exception.

Looking back, Zamp customers had a stress-free sales tax experience and had time back to focus on growing their business in 2024. This means they were compliant year round, avoiding any penalties and worries about sales tax audits.

We also found that the top five states contributing to sales tax within Zamp’s product in 2024 were:

• California: 15.37%

• Texas: 7.83%

• New York: 5.95%

• Florida: 5.52%

• Illinois: 4.76%

Want to know more about staying compliant in 2025? Check out our free guides that cover everything you need to know about sales tax compliance. 👇

• Sales Tax Guide for E⁠-⁠Commerce →

• Sales Tax Guide for SaaS Businesses →

PARTNER SPOTLIGHT

NETFORMIC works with clients to create a seamless and engaging online experience for global audiences. They’ve empowered medium-sized companies to achieve their goals by leveraging future-proof technologies that handle complex requirements and propel digital businesses forward.

Ready to take your business to the next level? Get in touch or reply to this email for a direct intro to their team.

YOUR QUESTIONS, ANSWERED!

Q (Karen): Does my business have to participate in all sales tax holidays?

A: It depends. In some states, sales tax holidays are mandatory but other states allow retailers to opt-in or out. Most states won’t penalize you for giving them more money.

However, it’s worth considering that you could potentially lose customers to competitors who are honoring the sales tax holiday, which can have other long term ramifications.

Get the full scoop on sales tax holidays →

Thanks for reading along.

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

If you enjoyed this one, please share it with your network. 🤝

If you found it helpful, reply back and let me know. I live for the people.

If you have any feedback, suggestions or questions, please let me know by responding to this email or DM me on Twitter or LinkedIn.

Until next time’s 🗑 …

Rohit & the Zamp team