July 2026 brings numerous state and local sales tax rate changes, alongside new tax obligations such as the Illinois digital ad and social media tax. Businesses must review their nexus footprint and update their point-of-sale and billing systems to ensure they continue to collect the correct rates.
The taxability of Software as a Service (SaaS) and digital products varies widely by state. For example, some states have different rules depending on whether software is delivered electronically or if physical media is involved. Businesses must check the specific tax laws in every state where they have established nexus to ensure compliance.
State tax amnesty programs provide a limited-time opportunity for qualifying noncompliant businesses to pay off past-due, unreported taxes without facing the severe penalties or high interest rates normally applied by the state. Participating in these programs allows companies to catch up on their tax obligations and reduce their financial and legal risk.