Sales tax laws are evolving...

...and more states are expanding their taxable categories to include services and digital goods. For example:

• Maryland now taxes computer systems design, data processing, software publishing, and web hosting.

• Minnesota added financial planning, payroll services, tax prep, and even credit card processing fees.

Another critical area is the economic nexus. This concept, established by the 2018 South Dakota v. Wayfair case, means that even remote businesses can establish a tax obligation simply by selling to customers in another state. Each state has its own thresholds—based on sales volume, transaction count, or both—making compliance a moving target.

Working with a CPA ensures your business stays compliant with these ever-changing rules. Don’t let sales tax catch you off guard—review your exposure now before penalties add up.