Completely Compliance:
Q2 2026

Updates by State

• Alabama: Legislature Considers Sales Tax Exemption for Vision Aids
• Illinois: New Tax Archive—Where to Find Prior-Year Tax Materials
• Louisiana: Changes to Electronic Filing and Payment Mandate
• Minnesota: New Accelerated Sales Tax Payment Rules Take Effect in 2027
• New Mexico: What’s New on TAP?
• North Carolina: Tax Guidance for Retailers Regarding Penny Rounding
• Ohio: Vendor Timely Filing Discount Update
• Texas: EDI Sales and Use Tax Compiler Update
• Manitoba, Canada: New Mandatory Online Filing Mandate and Updates to Sales Tax Reporting

Alabama: Legislature Considers Sales Tax Exemption for Vision Aids

Written by: Shantol Lerche

House Bill 15, introduced by Rep. Mark Shirey, proposes an amendment to Alabama’s tax code that would exempt eyeglasses and contact lenses from state sales and use taxes. The measure is intended to reduce costs for residents who rely on corrective vision aids, making these essential items more affordable. The bill also includes a local option provision, allowing counties and municipalities to decide whether to adopt the exemption within their jurisdictions (Alabama Legislature, 2026).

HB 15 advanced out of the House Ways and Means Education Committee on March 18, 2026, and was read for a second time and placed on the House calendar on March 19, 2026. However, no further action was taken before the close of the regular legislative session. Supporters highlight potential financial relief for consumers, while some lawmakers continue to weigh the impact on state and local tax revenues.

Illinois: New Tax Archive—Where to Find Prior-Year Tax Materials

Written by: Claire Ashcraft

The Tax Archive is a research library run by the Illinois Department of Revenue (IDOR). It stores older, less frequently used tax materials, helping taxpayers and professionals find historical documents and forms not on the main IDOR site.

The archive includes searchable collections of:

• Prior year tax forms and instructions
• Informational bulletins and compliance alerts issued in prior years
• Legal research documents, such as administrative hearings and letter rulings
• Annual reports and other historical statistics related to taxes
• Other archived publications and resources relating to various tax subjects

Use the site’s search function to find content by keyword or browse by category. These documents are provided for reference or research purposes and may be outdated in comparison to the current information available on the main IDOR website.

Louisiana: Changes to Electronic Filing and Payment Mandate

Written by: Zachary McCauley

As of January 1, 2026, the Louisiana Department of Revenue requires electronic filing and payment for a broad range of tax returns. A Notice of Intent outlining these rules was published on October 20, 2025, with the final regulation released in the January 2026 Louisiana Register.

The mandate covers all sales and use tax returns (except consumer use tax, special events sales tax, and watercraft certifications), all withholding tax returns, required 1099‑NEC filings, oilfield site restoration fees, and annual informational or composite returns for S corporations.

These requirements apply to any return or payment submitted on or after January 1, 2026, regardless of the reporting period, unless an exception applies. Noncompliance without an approved hardship exemption may result in a penalty of $100 or 5% of the tax due—whichever is greater. Failure to use electronic funds transfer will also cause payments to be treated as delinquent, with penalties and interest.

Electronic filing and payment are available at no cost through the Louisiana Taxpayer Access Point (LaTAP), though users may need to add the relevant tax account type before filing.

Key Takeaways

1. Mandatory electronic filing and payment began January 1, 2026, for most Louisiana tax returns, including sales and use, withholding, 1099‑NEC, oilfield fees, and S‑corporation informational/composite returns.
2. Penalties apply for noncompliance, including at least $100 or 5% of the tax for failing to file electronically, and delinquency penalties for not using electronic funds transfer.
3. LaTAP offers free electronic filing, but taxpayers may need to update their account access before submitting returns.

Minnesota: New Accelerated Sales Tax Payment Rules Take Effect in 2027

Written by: Andrea Morrison

Beginning in calendar year 2027, Minnesota tax professionals and vendors should prepare for a key change in sales tax remittance requirements. Under amendments to Minn. Stat. § 289A.20, subd. 4, vendors with significant sales tax liabilities will be required to make an accelerated payment in June each year.

What’s Changing?

Starting with taxes remitted after May 31, 2027, vendors who had $250,000 or more in sales tax liability during the previous fiscal year (ending June 30) must:

• Pay 5.6% of their estimated June sales tax liability. This payment is due two business days before June 30 each year.
• Remit any remaining June liability by August 20. Any unpaid portion of the June tax must be paid by this date.

This accelerated payment requirement does not apply to taxes imposed under chapters 168E, 295, and 297H. Additionally, outdated provisions related to construction material vendors have been removed.

Penalty for Underpayment

Minnesota Statutes § 289A.60 now includes subdivision 15a, which introduces a penalty for failing to make the required accelerated June payment:

• Penalty amount: 10% of the unpaid June liability
• Safe harbor: No penalty will apply if the vendor remits the lesser of:
  • 5.6% of the previous May’s liability, or
  • 5.6% of the average monthly liability for the prior calendar year

This penalty provision also takes effect for taxes remitted after May 31, 2027.

Tax professionals should begin reviewing their prior-year liabilities and prepare for compliance with these new accelerated payment rules. Early planning can help avoid penalties and ensure smooth transitions when the law takes effect.

For more information, please visit Minnesota’s 2025 Sales and Use Tax Legislative Bulletin.

New Mexico: What’s New on TAP?

Written by: Rachael Dugan

There have been a few changes made to the Taxpayer Access Point (TAP) that tax preparers should be aware of, which are listed below. More information can be found on the New Mexico Tax and Revenue webpage, What’s new on TAP?

• Listed under the “Manage My Profile” section:
  • You can now add and replace phone numbers and email addresses in the system using links. There is also a quick “add” option for previously used phone numbers and email addresses.
  • You now have the option to go passwordless, provided you have two other authentication methods set up.
  • Security Questions are listed under the Password section of the page on their own link.
• When you initially set up your web logon, the verification method will default to the option you first choose.
  • If you want to choose a new default authentication method, select “Choose another way to sign in” and choose to sign in using your preferred method. This will be your default authentication method moving forward, unless changed again.
• When making an e-check payment on TAP, you are now required to set a new payment channel or choose a default payment channel.

For general questions, please call (866) 285-2996. For technical assistance, email TRD-Tap-TechnicalHelp@state.nm.us.

North Carolina: Tax Guidance for Retailers Regarding Penny Rounding

Written by: Christina L. Stainbrook

The North Carolina Department of Revenue (NCDOR) issued Sales and Use Tax Directive 26-1 on January 22, 2026, providing guidance for retailers on how to handle sales tax when rounding cash transactions due to the United States Mint’s suspension of penny production for circulation.

With pennies no longer being produced, many retailers are rounding cash totals—either up, down, or to the nearest five-cent increment—after calculating sales and use tax. The directive makes clear that this rounding of cash receipts does not change the amount of tax owed. Tax must still be calculated on the full sales price or gross receipts before any rounding, and the decision to round up or down does not increase or decrease the tax due.

This guidance applies only to cash payments and does not affect non-cash methods like card or electronic payments. To comply with North Carolina law, retailers that round cash transactions should maintain records documenting these rounding practices in their accounting systems.

Ohio: Vendor Timely Filing Discount Update

Written by: Andrea Morrison

Ohio has announced changes to the Vendor Timely Filing Discount that took effect for any sales or use tax return required to be filed on or after January 1, 2026. While the discount rate remains 0.75%, the state is introducing a new $750 monthly cap per vendor’s license. This cap applies even if the taxable period is earlier, which means the December 2025 return—filed in January 2026—was subject to the new limit.

The only exception is tax from motor vehicle sales or leases, which continues to qualify for the full, uncapped discount. Businesses with multiple vendor licenses may apply the $750 cap to each license, and semiannual filers apply the cap for each month included in the return. Additionally, vendors reporting more than $100,000 in taxable sales through OH|TAX will be prompted to identify any motor‑vehicle‑related sales so the correct discount can be calculated.

Texas: EDI Sales and Use Tax Compiler Update

Written by: Zachary McCauley

The Texas Comptroller introduced a new Sales and Use Tax Electronic Data Interchange (EDI) compiler check on February 1, 2026.

This update specifically affects the Forney local jurisdictions—Forney City (2129051) and Forney Crime Control (5129612).

The revised validation rule requires that these two jurisdiction codes must both be present or both be absent in the List Supplement section (TFS~T2~26120 / TFS~T2~26130) of any .txt or .edi upload. Records that do not meet this condition will fail the Comptroller’s EDI compiler check.

Key Points:

• New EDI validation rule took effect on 02/01/2026.
• Forney City (2129051) and Forney Crime Control (5129612) must always be included or excluded as a pair in the List Supplement.
• Non‑matching jurisdiction combinations will trigger an EDI error instead of a passed record.

Manitoba, Canada: New Mandatory Online Filing Mandate and Updates to Sales Tax Reporting

Written by: Christina L. Stainbrook

Manitoba’s 2026 budget introduces mandatory electronic filing for Retail Sales Tax (RST). Effective January 1, 2028, all businesses registered to collect retail sales tax will be required to file, remit, and pay electronically using TAXcess.

Effective July 1, 2026, the RST exemption for basic groceries will be expanded to include additional food and beverages for human consumption sold by grocery stores. Newly exempt items include ready-to-eat prepared foods, prepared food platters, snack foods, carbonated beverages, and beverages containing 1% or less alcohol by volume, single servings of sweetened baked goods, and confectionery items. Effective the same date, RST will no longer apply to prenatal vitamins.