- Changes in Economic Nexus Calculations: The year 2025 has seen significant updates to sales tax compliance in the U.S., particularly regarding economic nexus calculations. States like Alaska and Utah are removing transaction-based thresholds, which will allow many small e-commerce and digital retailers to opt out of sales tax registration if their gross sales remain below the required threshold, potentially reducing compliance costs.
- Sales Tax Rate Adjustments and Digital Services: Several states have increased their sales tax rates, such as Louisiana and California, while also expanding the definition of taxable supplies to include various digital services and products like software, streaming services, and e-marketplace services. This reflects ongoing legislative adaptations to the growing digital economy.
- Introduction of Retail Delivery Fees: New retail delivery fees have been introduced in states like Colorado and Minnesota, requiring businesses to include this fee on invoices when delivering taxable supplies. This fee is distinct from sales tax and is part of a broader trend where states seek to expand their tax base and increase revenue through new levies and adjustments in tax policies.
Source 1stopvat
