January 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.

Every day’s a sales tax holiday at Avalara. At least, that’s my excuse for bringing cake to the office on a Tuesday. But for retailers, sales tax holidays (a time when consumers don’t pay sales tax on certain goods or services that are normally taxable), can complicate tax compliance. Get ready with our 2025 sales tax holiday roundup.

Tax form trouble. It’s that time of year again — employees and earners everywhere are receiving tax forms in the mail and reflecting on all the invoices they sent last year. Find out more about the different types of 1099 forms — and which ones you should file.

Ships, ahoy! Is shipping taxable? Shipping tax laws vary by state and rates might be different based on delivery method and other factors. Luckily for you, we created this state-by-state guide to help you stay compliant.

Let’s get digital. New York is considering bills that would create a tax on annual gross revenues derived from digital advertising services and a sales tax on digital advertising services. This isn’t the first time the Empire State has considered taxing digital ads and data collection — find out what’s different about the latest plan.

Are transaction thresholds going out of fashion? A growing number of states are eliminating the transaction threshold for sales tax nexus, including South Dakota. This doesn’t change the complexity of tax compliance in those states, however.

Losing the remote (seller transaction threshold)? The New Jersey Legislature is considering a bill that would eliminate the state’s remote seller sales tax economic nexus transaction threshold. Further west, Utah is also considering cutting its remote seller transaction threshold in 2025.

New Hampshire vs. Sales Tax. On January 8, 2025, the New Hampshire Senate introduced a sales tax bill that would prevent New Hampshire businesses from having to collect sales tax for other states. What would this mean for businesses that operate in the Granite State?

It’s our favorite time of year. When we say we live and breathe tax compliance, we mean it. We start each day with a large cup of coffee and a roundup of the latest tax changes around the world. We have a rescue pug named Nexus. Our dating profile includes a list of our favorite wacky tax laws from across the country (and obviously, lots of pictures of Nexus). And our favorite time of year? Avalara Tax Changes season. Read the 2025 Avalara Tax Changes report for tax trends, changes, and what you can expect for the coming year.

Getting to the source of the issue. New remote sales tax sourcing rules for out-of-state sellers took effect in Illinois on January 1, 2025. What does this mean for companies that sell into the Prairie State? Sales tax just got a little more complicated.

Get out the cake, balloons, and Harmonized System (HS) codes. This year’s International Customs Day (January 26, 2025) is celebrating efficiency, security, and prosperity. Find out more about this holiday.

A kernel of truth. Should a tasty snack be taxed differently based on whether it’s sweet or savory? Grab your snack of choice and read about the popcorn tax controversy in India.

The early bird gets the discount. Some counties offer a discount for paying your property tax bill early, and some assessors may impose a fine on late filers. Learn more about business property tax discounts and penalties — and how an automated solution could save your business some dollars.

Let’s double-check. Accepting personal property tax assessments on face value can be a costly mistake. Learn how to review valuations and conduct your own.

Accounting for personal property tax. Unlike real property tax, personal property tax is rarely straightforward. Here’s how you can help your clients determine product taxability.

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