Recent Sales Tax Policy Changes in Vermont, North Carolina, New Jersey, and Ohio: What You Need to Know

States across the country are making significant sales tax policy changes with little notice, keeping businesses on their toes. Vermont, North Carolina, New Jersey, and Ohio are just a few examples of states that have recently implemented changes that could impact businesses.

In Vermont, Governor Phil Scott vetoed a bill that extended sales and use tax to remotely accessed prewritten computer software. However, the Vermont Legislature overrode the veto, and the measure took effect on July 1, 2024. Additionally, a 3% short-term rental impact surcharge was imposed on all short-term rentals in the state as of August 1, 2024.

North Carolina repealed the 200-transaction threshold for economic nexus, meaning remote sellers with 200 or more transactions but less than $100,000 in gross sales in the state no longer need to register for sales tax. This change, signed into law on July 1, 2024, could catch some businesses off guard.

New Jersey repealed its annual sales tax holiday, meaning certain items that would have been tax-exempt will now be subject to sales tax. Retailers have a short amount of time to prepare for this change.

On the other hand, Ohio expanded its sales tax holiday for 2024, running from July 30 through August 8, 2024. The sales tax exemption will now apply to almost all tangible personal property priced up to $500, giving retailers just two months to prepare.

While these changes may create challenges for businesses, Minnesota provided advance notice about a retail delivery fee that took effect on July 1, 2024. Being proactive and ready to pivot is crucial for businesses to stay sales tax compliant in the face of these last-minute changes.