Updates by State
- Alabama House Bill 152
- Colorado Springs Rolled Out a New Portal in September
- Florida’s New Sales Tax Exemptions
- Illinois to Repeal State Grocery Tax in 2026; Local Options Remain
- Illinois Offers Tax Amnesty This Fall
- Kentucky Removes Manufacturing Entities from Accelerated Status
- North Carolina’s Cumberland County Launches New Gross Receipts Portal
- Texas Senate Bill 2206—Removal of Research & Development Tax Exemption
- Washington Sales Tax Now Applies to Additional Services
- Wisconsin Expands Sales and Use Tax Exemption on Residential Utilities
Alabama House Bill 152
Written by: Adore Walker
Alabama House Bill 152 passed on May 12, 2025. This bill provides a temporary sales tax exemption for certain items intended for personal use, including diapers, baby supplies, baby formula, maternity clothing, and menstrual hygiene products. This bill only provides exemptions for the state portion of sales and use taxes; local municipalities can choose whether to apply these exemptions to their taxes. The goal is to reduce the financial burden on families and individuals by making essential care items more affordable. This exemption is effective September 1, 2025, to August 31, 2028. Read the full bill on LegiScan.com.
Colorado Springs Rolled Out a New Portal in September
Written by: Daniel Tilson
Colorado Springs transitioned its online sales tax services from the Munirevs platform to a new system powered by GenTax. The Munirevs portal closed on September 4, and the GenTax portal launched on September 8. Businesses can register for the new system by visiting coloradosprings.gentaxcpc.net and selecting “Create a Web Logon” in the Registration section, then following the prompts to provide the required information. Once registration is complete, users will be able to log in and access their sales tax accounts.
According to city officials, the move to GenTax is designed to improve the sales tax filing experience by providing a more modern, secure, and efficient platform. Upgrades like these typically offer faster performance, better navigation, and enhanced security features, making it easier for businesses to manage their accounts. Businesses should ensure their mailing address and FEIN are current, and should have received login instructions via email or postcard in August. For assistance, the city’s Sales Tax Division can be reached at 719-385-5903 (Option 1) or by emailing GenTaxNotifications.SMB@coloradosprings.gov.
Florida’s New Sales Tax Exemptions
Written by: Adore Walker
Effective August 1, 2025, the following items, which were temporarily exempt during the previous tax holidays, will remain exempt: batteries, bicycle helmets, carbon monoxide alarms, fire extinguishers, ground anchor systems and tie-down kits, insect repellent, life jackets, portable gas cans, portable generators, smoke detection devices, sunscreen, and waterproof tarps. For more information and understanding of these items, view the Tax Information Publication.
Illinois to Repeal State Grocery Tax in 2026; Local Options Remain
Written by: Claire Ashcraft
On August 5, 2024, Governor J.B. Pritzker signed HB 3144, an omnibus local government tax bill that repeals the Illinois 1% state grocery tax, effective January 1, 2026. This tax applied to grocery items meant for off-premises consumption (i.e., items bought to take home). Governor Pritzker framed this as tax relief for Illinois families, especially in light of inflation pressures.
While the state tax is eliminated, local governments may still impose their own grocery tax by passing a local ordinance. The Illinois Municipal League (IML) has provided a model ordinance available online for municipalities to use. To implement a local grocery tax starting January 1, 2026, a municipality must have passed the ordinance and submitted certified copies to the Illinois Department of Revenue (IDOR) by October 1, 2025.
Additional information is available from the IML and the Local Tax Allocation Division (LTAD) within the IDOR. There is also a weekly updated status report to indicate the status of each municipality’s grocery tax ordinance. For questions, contact the LTAD at REV.LocalTax@illinois.gov.
Illinois Offers Tax Amnesty This Fall
Written by: Claire Ashcraft
Taxpayers who have tax due for tax periods ending between June 30, 2018 and July 1, 2024, are eligible for tax amnesty from the Illinois Department of Revenue (IDOR). Those owing only penalties and interest do not qualify for amnesty. Taxes not administered by IDOR (property, franchise, local taxes, etc.), liabilities for periods ending on or before June 30, 2018, or after July 1, 2024, Motor Fuel Use Tax, and non-tax charges like licensing fees or violations are not eligible.
The payment window is from October 1, 2025, to November 17, 2025, and the payment must be made in full during this time. If a return was not filed or was incorrect, the original return or an amended return must be filed to correct the liability before making a payment. Taxpayers who meet the eligibility criteria and who pay in full during the amnesty period will have all penalties and interest waived.
Payment can be made online at MyTax Illinois. Additional information can be found on IDOR.
Kentucky Removes Manufacturing Entities from Accelerated Status
Written by: Claire Ashcraft
According to the Kentucky Department of Revenue (DOR), the Division of Sales and Use Tax has removed manufacturing entities from accelerated status effective July 1, 2025. Those accounts are no longer required to make accelerated filings and payments. However, the DOR could reverse this decision in the future.
Entities that were removed from accelerated status should have been notified via email or mail. A refund request can be submitted to receive the last prepayment made. Beginning with the July 31, 2025, period, accounts not on accelerated status are required to file by the 20th of the month.
No other information about this was published or sent out by the DOR. If you have any questions or need additional information, you can contact them here.
North Carolina’s Cumberland County Launches New Gross Receipts Portal
Written by: Christina L. Stainbrook
Cumberland County Tax Administration has introduced a new Gross Receipts Portal, designed to simplify the filing process for local businesses. Through this convenient online system, business owners can quickly file Food and Beverage and Room Occupancy Tax returns, and will be seamlessly directed to MyCCNCPAY to make secure payments. To begin using the portal, businesses are required to complete and mail a PIN Request Form to the Tax Administration office, with a separate form needed for each account or location. This streamlined service aims to save time, reduce paperwork, and provide an easier way to stay compliant.
Texas Senate Bill 2206—Removal of Research & Development Tax Exemption
Written by: Daniel Tilson
On June 17, 2025, the Texas Governor signed SB 2206, which made adjustments to the state’s Research & Development Tax Credit structure. This bill increased the value of existing R&D credits to align state procedures with federal standards under IRC Section 41.
The following will become effective January 1, 2026:
- The Franchise Tax Credit Rate will increase from 5% to 8.722% for qualified research expenses
- The current Sales and Use Tax Exemption for Qualified Research and Development Propertywill be repealed (TX State Code Section 151.3182)
For further information, please see Senate Bill 2206 or the Texas State Code Section 151.
Washington Sales Tax Now Applies to Additional Services
Written by: Amanda Bratton
Effective October 1, 2025, businesses that provide the following services will need to start collecting and remitting Washington sales tax:
- Advertising services
- Live presentations
- Information technology services
- Custom website development services
- Investigation, security, and armored car services
- Temporary staffing services
- Sales of custom software and customization of prewritten software
Additionally, the definition of digital automated services (DAS) has been revised. It eliminates previous exclusions for services involving primarily human effort, live presentations, advertising services, and data processing services. However, a new exclusion for telehealth and telemedicine services has been added.
More details about these changes can be found on the Washington Department of Revenue website and within Engrossed Substitute Senate Bill (ESSB) 5814.
Wisconsin Expands Sales and Use Tax Exemption on Residential Utilities
Written by: Amanda Bratton
Effective October 1, 2025, sales of electricity and natural gas for residential use are exempt from Wisconsin sales and use tax year-round. Previously, this exemption was limited to the months of November through April. The exemption applies only to permanent residences and does not extend to transient accommodations, motor homes, travel trailers, or other recreational vehicles. Further details can be found in the 2025 Wisconsin Act 15 and in the July 2025 Wisconsin Tax Bulletin.
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