July and August 2025 Roundup: Tax laws you need to know

While you focus on your business, we stay on top of legislative and policy changes that can affect your tax compliance.

Tax rule changes

Keeping up with the taxes. More than 20 states saw sales tax changes in July. For example, Florida introduced new exemptions, Maryland started taxing many previously exempt business services, and Mississippi lowered its sales tax rate for groceries. Click on the links to find out more.

Another pink tax bites the dust. As of August 28, 2025, diapers, feminine hygiene products, and incontinence products are exempt from Missouri sales tax. See how mid-month tax changes can impact sales tax reporting.

The end of an era. Florida is repealing its one-of-a kind sales tax on commercial rents effective October 1, 2025.

A First Amendment no-no. The U.S. Court of Appeals for the 4th Circuit has decided that part of Maryland's digital advertising tax violates the First Amendment. Find out what happens next.

In the spirit of forgiveness. Washington state is temporarily expanding its voluntary disclosure agreement (VDA) program and plans to offer a first-of-its kind VDA progam for foreign retailers in 2026.

Washington sales tax goes wide. Beginning October 1, 2025, Washington sales tax will apply to a broad range of digital advertising and IT services. Does your business buy or sell any of them? Are you sure?

Putting the cap on SALT. The $10,000 state and local tax (SALT) deduction cap was set to expire after 2025. With the enactment of the One Big Beautiful Bill Act of 2025, the SALT cap will increase to $40,000 (plus adjustments for inflation) for tax years 2026 through 2029.

Big, beautiful 1099 changes. The same bill also changes 1099 thresholds. We've updated several blogs to explain the changes Congress approved, the new reporting thresholds for Form 1099-K and other 1099 forms, and how businesses and accounting practices can prepare.

Use tax matters. How long can a state tax the use of equipment or services? Should an item that's used for one day be taxed differently than an item used for one year? See what the courts had to say about this pivotal use tax case.

From the global tax desk

De minimis is dead. Long live tariffs. The U.S. has suspended the de minimis exemption for goods valued at or under $800. If you're having trouble keeping up with all the tariff changes, follow our tariff tracker or dig into more detailed blog posts about the end of de minimis, U.S.-China tariffs, U.S.-Canada tariffs, steel, copper, and aluminum tariffs, and reciprocal tariffs.

Parsing tariffs. Courts have ruled that the International Emergency Economic Powers Act (IEEPA) doesn't give the president blanket authority to impose tariffs. Learn more about IEEPA tariffs, Section 232 tariffs, and Section 301 tariffs.

Lights, cameras, tariffs. President Trump proposed a 100% tariff on all foreign-made movies. Find out how film tariffs would work and what they could mean for the movie industry.

From the property tax desk

An appealing proposition. The better you understand your commercial property tax assessments and the property tax appeals process, the more likely your appeals will succeed. Attending the Wichita Property Tax Conference can help deepen your understanding; if you missed it in 2025, mark your calendars for 2026.

Nothing simple about it. Since no two jurisdictions have the same property tax requirements, navigating the nuances is essential. Carl Hoemke, General Manager of Property Tax at Avalara, shares property tax compliance tips.

New and improved property tax management. Avalara Property Tax Managed Services combines expert support with agentic AI to simplify property tax compliance and reduce risk. If you've ever struggled with property tax compliance, learn when and why managed services for property tax make sense.

From the tap

Cocktails to go? Many states have made pandemic-era alcohol-to-go rules permanent. See which states still allow restaurants to deliver beer with pizza.

Drinks on the doorstep. A couple of states recently changed direct-to-consumer shipping rules related to beer, spirits, and wine. Click on the links to find out more.

Nuts and bolts

The future of tax research is here. Avalara is embedding AI directly into the Avalara Tax Research platform to make it easier for you to keep up with regulatory changes, jurisdiction-specific requirements, and growing documentation demands. Meet Avi, our conversational, AI-powered agent.

Do you know where your inventory is? Marketplace inventory can create a sales tax obligation for third-party sellers in more than 20 states. Find out where inventory can put you at risk for sales tax nexus.

Do sales tax holidays make good cents? Tax-free weekends may boost sales, but they also complicate sales tax compliance. Find out why sales tax holidays can be a pain for businesses - and what states can do to help alleviate that pain.

Change is constant. States periodically change fees or renewal requirements for sales tax permits. Ohio recently made changes that may affect your business.

Stay up to date on the latest in tax compliance news and tax rule changes with the Avalara Tax Desk.