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- Ready to sweeten your tax season?
Ready to sweeten your tax season?
The latest sales tax news, 2025 sales tax outlook, and more...
Rohit Bhadange
February 02, 2025
Welcome back, trash talkers!
Can you believe it's already February? We’re kicking off the month with some sweet sales tax insights—and a complete 2025 outlook to set you up for success.
Let’s dive in. 🏊
SALES TAX NEWS
1️⃣ Louisiana is now collecting sales tax on digital products. Some items covered under the new tax law, which went into effect on January 1st, include digital audiovisual and audio works, digital books and games, and digital periodicals.
2️⃣ In Mississippi, the Department of Revenue (DoR) has announced a new way for taxpayers to submit a Voluntary Disclosure Agreement (VDA). Taxpayers can now request to enter the state’s VDA program through email instead of mailing a letter to the DoR.
3️⃣ Texas has declared that transactions occurring within a bonded area are not subject to sales and use tax in the state. A bonded area is a secured area, usually a warehouse, where imported goods are stored for up to five years from the date of importation to the US.
4️⃣ In Missouri, an online meal-ordering platform requested clarification from the Department of Revenue (DoR) about its sales tax obligations as a marketplace facilitator. The DoR stated that the platform is not responsible for collecting sales tax on orders from in-state restaurants but must collect and remit Missouri use tax on orders from out-of-state restaurants unless the customer picks up the order directly.
5️⃣ As of January 1, 2025, Kansas has phased out its state sales tax on groceries by removing the 2% grocery tax.
6️⃣ Minnesota legislators are discussing a first in the state’s history in a recent budget proposal: shaving 0.075% off the state’s current sales tax rate of 6.875%.
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2025 SALES TAX OUTLOOK 👀
2025 is in full swing, and that means sales tax changes galore. After all, sales tax accounts for around 30% of a state’s revenue. But what exactly has changed?
Well, we researched all the details you need to know about the significant sales tax changes for 2025. Here are just a few that we found:
Alaska has removed the 200 transaction threshold for economic nexus.
Louisiana is now charging sales tax on digital goods.
Washington, DC, is increasing its sales tax rate in October.
The changes taking place in 2025 directly impact economic nexus—which directly affects online businesses. Other notable changes include updates to grocery taxes and SaaS. This shows that states are making moves after the South Dakota vs. Wayfair ruling seven years ago and are working to clarify guidance over digital goods and services.
Want to know more about sales tax changes and the state of the industry? Check out our free e-book that covers everything you need to know this year. 👇
PARTNER SPOTLIGHT
dotcomweavers works with B2B and B2C companies to provide results and drive growth. They specialize in Adobe Commerce, Magento, and BigCommerce and have expertise in digital transformations, workflow customizations, and automations and integrations.
Ready to improve and automate your sales and marketing? Get in touch or reply to this email for a direct intro to their team.
UPCOMING EVENTS 🎉
 In-Person Event | Wednesday and Thursday, February 5th and 6th Come see us at Meet Magento Florida on February 5th and 6th. We’re a proud sponsor of the event and will be there alongside other industry leaders, merchants, and developers for two days of networking and exciting opportunities. |
 In-Person Event | Wednesday, February 12th Join us for an interactive hourlong discussion at Ugly Talk: The Growth Blueprint at Shopify NY with our panelists as they reflect on the past year and share their experiences and learnings. |
 In-Person Event | Sunday, February 23rd Head to the desert for the perfect combination of golf, networking, e-commerce, and fun at Teeing Up Connections on February 23rd. Whether you want to discuss platform selection or automation, it’s a great setting to unwind with experts. |
 In-Person Event | Monday, February 24th Join DotcomWeavers and Zamp for a golf outing in Palm Desert, CA! Enjoy a round of gold with industry experts while driving your business growth and discussing the complexities of e-commerce. |
YOUR QUESTIONS, ANSWERED!
Q (Rita): Is sales tax based on the seller’s or customer’s location?
A: Sourcing rules can be origin or destination based on the state for intra-state commerce, whereas inter-state sourcing rules are always based on destination.
Sellers should collect tax for the state where the property is delivered to the customer.
For example, if the item is shipped to the customer, then tax would be calculated and collected on behalf of the delivery state, whether that is the same state where the seller is located or a different state.
Get the full scoop on origin based and destination based sourcing →
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