Exemption for Hearing Instruments – Effective October 1, 2025, through September 30, 2029

The City of Opelika has adopted an ordinance exempting the gross proceeds from the sale of hearing instruments from the city’s sales and use tax. This follows state exemption for hearing instruments and requiring municipalities to adopt their own ordinance to extend the exemption locally. The city exemption runs from October 1, 2025, through September 30, 2029, consistent with the state exemption period.

Sales Tax Repeal for Commercial Rentals - Effective October 1, 2025

Beginning October 1, 2025, Florida will repeal state sales tax (including discretionary surtaxes) on rent or license fees for commercial real property such as office, retail, warehouse, or self-storage space. The change takes effect only for rental or occupancy periods starting on or after that date. Occupancy or rental periods through September 2025 remain taxable even if payment is made after October 1. Read the tax publication here for more information.

General Excise Tax (GET) Exemption for Healthcare-Related Goods and Services - Effective January 1, 2026

Effective January 1, 2026, Hawaii expands its GET exemptions under Act 47 (Session Laws of Hawaii 2024). Certain amounts received by healthcare providers for goods and services purchased under Medicare, Medicaid, or TRICARE will no longer be subject to GET.

Key Details:

• Applies to hospitals, clinics, pharmacies, licensed physicians, dentists, APRNs, and pharmacists.

• Covers amounts received directly from Medicare, Medicaid, or TRICARE, as well as patient payments (deductibles, copayments, coinsurance) for covered services.

• Providers must continue reporting gross income and file Form G-45 and Form G-49, along with Schedule GE using the designated exemption/deduction code.

Taxability of Digital Services and Exemption for Medical/Mobility Equipment - Effective January 1, 2026

Effective January 1, 2026, significant changes take effect:

• Taxable: Digital Services
  “Digital audiovisual services” and “digital audio services” are added to the list of taxable services. These will be subject to sales tax at a rate of 5.5%.

• Exempt: Medical & Mobility Equipment
  The sale, lease, or rental of the following items will be exempt from sales tax when intended for home use or use in a motor vehicle:

  • Durable medical equipment

  • Breast pumps

  • Mobility-enhancing equipment

Exemption for Breast Pumps and Related Supplies - Effective January 1, 2026

Beginning January 1, 2026, Nevada exempts the sale of breast pumps and related supplies from sales and use tax. The exemption applies to:

• Breast pumps for home use with a prescription

• Breast pump kits and single-patient replacement parts

• Breast pump collection and storage supplies (with prescriptions)

This change expands Nevada’s medical exemptions to cover maternal health products, reducing costs for families and aligning with broader durable medical equipment exemptions.

Exemption for Firearm Safety Devices - Effective November 1, 2025

Beginning November 1, 2025, Oklahoma exempts the sale of firearm safety devices from sales and use tax. The exemption applies to a broad range of qualifying safety equipment designed to promote responsible firearm storage and use.

Sales Tax on Short-Term Parking Services - Effective October 1, 2025

Beginning October 1, 2025, Rhode Island imposes sales tax on short-term parking services under House Resolution 5076 Substitute A (State Fiscal Year 2026 budget). The standard 7% sales tax rate applies to parking facilities where the occupancy is less than one month.

Key details:

• Taxable short-term parking includes paid parking garages, event parking, beach parking, and municipal/state-run parking lots or garages.

• Exempt: Parking services with a duration of one month or longer.

• Retail compliance: Providers must hold a retail sales permit, list sales tax as a separate line item on receipts, and file monthly returns (Form RI-STR).

Exemptions for Prescription Drugs and Medical Supplies - Effective August 1, 2025

Rhode Island expands its list of sales and use tax exemptions to include the following categories, shifting from taxable to exempt:

• Free samples of prescription drugs for human use

• Drugs, other than over-the-counter drugs, for animal use with a prescription

• Insulin for animal use (with or without a prescription)

• Medical oxygen for animal use (with or without a prescription)

• Prescription drugs for animal use sold to veterinary hospitals and other animal medical facilities

• Free samples of drugs for animal use

This change broadens Rhode Island’s medical exemption framework, easing compliance for pharmacies, veterinarians, and healthcare providers.

Oral Healthcare Items – Prescription-Based Exemptions - Effective August 1, 2025

South Dakota distinguishes taxability of oral healthcare items based on prescription status:

• Taxable: Most oral healthcare items (e.g., toothbrushes, floss, mouthwash) remain taxable when sold without a prescription.

  • Items sold to institutions or businesses (non-individuals) remain taxable regardless of prescription status.

• Exempt: Prescription oral healthcare products provided to individuals are exempt. The South Dakota Department of Revenue has clarified that toothbrushes and floss sold under prescription qualify as exempt medical devices.

This guidance underscores that the key factor is prescription vs. non-prescription, rather than over-the-counter status.

Sales Tax Exemption for Adaptive Driving Equipment - Effective October 1, 2025

Beginning October 1, 2025, “adaptive driving equipment” is classified as mobility enhancing equipment and is exempt from sales and use tax when installed in a motor vehicle.

The definition of adaptive driving equipment includes:

• Wheelchair or scooter lifts

• Equipment to secure a wheelchair

• Swivel seats

• Hand or foot controls

• Steering aids

This change applies regardless of who provides the equipment or parts, ensuring broader accessibility for individuals requiring adaptive mobility solutions.

Town of Round Hill Meals Tax - Effective January 1, 2026

Beginning January 1, 2026, the Town of Round Hill will impose a 2% Meals Tax on all prepared food and meals sold within the Town. The tax applies broadly to food and beverages, including alcoholic beverages, offered for immediate consumption, whether consumed on- or off-premises.

Sales Tax Expansion to Services – Effective October 1, 2025

Starting October 1, 2025, Washington will begin charging sales tax on several services that were not previously taxed. This change comes from Engrossed Substitute Senate Bill 5814 (ESSB 5814).

The services that will now be taxed include:

• Information technology services

• Custom website development

• Security, investigation, and armoured car services

• Temporary staffing services

• Live presentations

• Advertising services

• Sales of custom software and customization of prewritten software

Businesses that provide these services will need to start collecting sales tax beginning October 1, 2025.

Existing contracts:
If a contract for one of these services was signed and paid for before October 1, 2025, it will not be taxed, even if the services continue after that date. However, if payment is made on or after October 1, sales tax will apply.

St. Tammany Parish rate updates – Effective October 1, 2025

Sales & Use Tax: New Combined Local rate for Northshore Square Economic Development District (NorthShore Square EDD) rate is 5.63%.

Hotel Tax: The Northshore Square EDD will impose a 2% hotel tax in addition to the parish-wide 4% hotel tax.