Updates by State
- City of Lafayette, Colorado—Removal of Timely Filing Vendor’s Fee
- Illinois to Repeal 1% State Sales Tax on Groceries Starting in 2026
- Illinois Offers Tax Relief for California Wildfire Victims
- Kentucky Moved to New Tax Portal in March 2025
- Changes to Maine Sales Tax Returns—Credit for Goods Resold
- Ohio Vendor’s License Fee to Increase Starting April 9, 2025
- Virginia Sales Tax Form Updates
City of Lafayette, Colorado—Removal of Timely Filing Vendor’s Fee
Written by: Daniel Tilson
The Lafayette City Council has decided to eliminate the timely filing discount, known as vendor’s fee allowance, from all tax types starting with the January 1, 2025, tax period.
For more information, see the Lafayette City Ordinance.
Illinois to Repeal 1% State Sales Tax on Groceries Starting in 2026
Written by: Claire Ashcraft
Governor JB Pritzker signed House Bill 3144 into law, now Public Act 103-0781. Beginning January 1, 2026, Illinois will repeal the 1% state sales tax on groceries. This tax applies to grocery items intended for off-premises consumption. Local jurisdictions may impose their own grocery tax ordinances. The Local Tax Allocation Division (LTAD) needs to receive these ordinances between April 2, 2025, and October 1, 2025, for the local grocery tax to take effect on January 1, 2026.
Illinois Offers Tax Relief for California Wildfire Victims
Written by: Claire Ashcraft
Governor JB Pritzker and the Illinois Department of Revenue (IDOR) announced Taxpayers who reside or have a business in areas designated by FEMA now have an extended deadline for tax payments, providing relief from penalties and interest. Any additional counties affected later will also qualify.
Affected taxpayers have until October 15, 2025, to file and pay taxes during this period, including state tax returns, payroll and excise returns, and various corporate and partnership filings. Penalties for failing to make payroll and excise payments between January 7 and February 7, 2025 will be waived if they were paid by February 7. Penalties and interest will start accruing on October 16, 2025.
Taxpayers must notify IDOR of delayed filings either by mail (with “2025 California Wildfires” marked on both the envelope and tax return) or by email. For other tax-related inquiries, affected taxpayers are advised to contact IDOR at REV.DisasterRelief@illinois.gov. If penalties have already been imposed, taxpayers should email IDOR to request relief.
Kentucky Moved to New Tax Portal in March 2025
Written by: Claire Ashcraft
On March 14, 2025, Kentucky launched a new tax portal called MyTaxes. The new portal allows a more comprehensive view of taxpayer data, the ability to view taxpayer correspondence, and increased self-service capabilities.
MyTaxes replaces OneStop, E-Tax, the UGRLT and Telecom filing system, and WRAPS, the Withholding Returns and Payment System. An email with login credentials and instructions for MyTaxes was sent to OneStop, E-Tax, and WRAPS users the first week of March 2025. The Department of Revenue archived historical data from OneStop, but taxpayers weren’t able to access the records until after a mandatory two week pause that started February 26.
For additional information, contact the Customer Care Center at portalhelp@ky.gov, visit the Department of Revenue MyTaxes, or call (502) 764-5555.
Changes to Maine Sales Tax Returns—Credit for Goods Resold
Written by: Andrea Morrison
Maine Revenue Services (MRS) has implemented significant changes to the Maine sales tax return, effective immediately. Previously, retailers who paid sales tax on purchases for resale could claim a credit for these taxes on their sales tax returns. This credit was intended for small retailers with annual gross sales under $3,000 who had not been issued a resale certificate by MRS.
However, an increasing number of active registered retailers with valid resale certificates have been incorrectly claiming this credit. MRS Rule 301, Section 4.2, prohibits this practice for retailers holding a resale certificate. These retailers must provide their resale certificate to vendors to purchase goods tax-free.
To enforce compliance, the Maine Tax Portal (MTP) has been updated to block active registered retailers from claiming the Credit for Sales Tax Paid on Goods Purchased for Resale. Retailers who are unable to use their resale certificate for tax-free purchases can request a refund through the MTP by submitting the necessary documentation, including receipts, payment methods, and customer invoices.
These changes aim to streamline the process and ensure accurate tax reporting. Tax professionals should advise their clients accordingly to comply with the updated regulations.
You can refer to the official notice from Maine Revenue Services for detailed information on the changes to the Maine Sales Tax return.
Ohio Vendor’s License Fee to Increase Starting April 9, 2025
Written by: Andrea Morrison
Effective April 9, 2025, businesses in Ohio applying for a new vendor’s license will experience a fee increase, as announced by the Ohio Department of Taxation. The cost of obtaining a vendor’s license will increase from $25 to $50, impacting applications for both county vendor’s licenses and transient vendor’s licenses.
This change is part of the recently passed House Bill 366, also known as the FORCE Act. The additional revenue generated from the raised fee will support the Organized Crime Commission Fund, aimed at combating organized retail theft and supporting law enforcement efforts statewide.
Businesses planning to apply for a new vendor’s license after April 9, 2025, should prepare for the updated fee structure. For more details or to apply, visit the Ohio Department of Taxation website.
Virginia Sales Tax Form Updates
Written by: Christina L. Stainbrook
Virginia is making an update to its ST-6, ST-7, ST-8, and ST-9 forms by creating a combined ST-1 form for filing beginning with the April 2025 period.
The process for filing sales tax in Virginia will remain the same. However, the new structure combines the previous four forms into a single return.
Businesses that typically report state-exempt sales on food and personal hygiene items and file using an online business account or eForm will see slight modifications in how exemptions and deductions are entered.
A demo is being developed to guide users through these changes.
Monthly filers will encounter the changes when filing their sales tax returns in May, while quarterly filers will see the updates when filing their returns in July.
For companies that have filed a waiver and file sales tax by paper, the new ST-1 form eliminates the need for multiple schedules, as all schedules have been consolidated into a single table on the new form.
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