July typically brings significant changes to tax policies, especially concerning sales taxes. This month, alongside adjustments to sales and use tax rates, modifications to economic nexus thresholds, retail delivery fees, and sales tax holidays are noteworthy.
Increased Retail Delivery Fees: Colorado’s retail delivery fee rises from 28 cents to 29 cents starting July 1, 2024, impacting businesses absorbing these costs.
Minnesota introduces a new 50-cent retail delivery fee on the same date, similar but distinct from Colorado’s adjustment.
Wyoming Economic Nexus Update: Effective July 1, 2024, Wyoming eliminates the 200-transaction threshold for economic nexus, simplifying obligations for remote sellers.
New Sales Tax Exemptions: Kentucky introduces a new exemption from July 15, 2024, covering data center equipment in specific consolidated local government areas with a population over 500,000.
New Taxes: Maryland imposes a 6% sales and use tax on home amenity rentals starting July 1, 2024, excluding sleeping quarters but covering areas like pools and clubrooms.
Tennessee now taxes books and magazines sold by certain out-of-state sellers shipped to consumers, effective July 1, 2024, eliminating previous exemptions.
Vermont starts taxing Software as a Service (SaaS) under sales and use tax from July 1, 2024, reversing a prior exemption.
New Disaster Relief Measures: States like Iowa, Kentucky, and Rhode Island offer tax relief due to severe weather events affecting tax filing and payments.
July Sales Tax Holidays: Several states, including Alabama, Florida, Mississippi, Ohio, Puerto Rico, and Tennessee, host tax-free weekends in July 2024, each with specific dates and exemptions.
Miscellaneous Changes
California prohibits businesses from advertising prices that exclude mandatory fees, effective July 1, 2024, with exceptions for government-imposed taxes, fees, and reasonable shipping costs.
Virginia mandates all new business registrations with Virginia Tax to occur online from July 1, 2024.
Tennessee introduces new sourcing rules for certain sales tax determinations.
Sales Tax Rate Changes
Various states, including Alabama, Arkansas, California, Colorado, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, South Dakota, Texas, Vermont, Washington, West Virginia, and Wyoming, experience local sales and use tax rate changes, including those for aviation fuel, motor fuel, and municipal motor fuel use.
For more detailed information on these updates, visit IRS and refer to their resources on state-specific tax changes.