Understanding When Tips Are Subject to Sales Tax in Minnesota & South Dakota 

Businesses often assume that if a tip isn’t subject to federal income tax withholding rules, it must also be exempt from sales tax. But sales tax is a state question, and states determine for themselves whether a gratuity is taxable. Minnesota and South Dakota provide straightforward but different guidance on when a tip becomes a taxable charge.  You’r

Are Separately Stated Delivery Charges Taxable?  

Many businesses add delivery, shipping, or freight charges to customer invoices. The question is whether these charges are taxable. States fall into two main groups. Some do not tax separately stated delivery charges. Others tax the charge whenever the underlying item is taxable. Because invoices often itemize delivery charges separately, it is important to kno

Everyday Cleaning Services May Be Taxable. Here’s How States Handle It. 

Cleaning and janitorial services feel like routine operating expenses, but in several states, the tax rules tied to this work are more complicated than many businesses expect. Light office cleaning, dusting, window washing, or disinfecting services can trigger sales tax obligations depending on where the service is performed. For multi-location businesses or co

Do I Include Sales Tax in Line 1 Gross Receipts? 

Freebies and Giveaways: How States Tax Promotional Items in 2025 

Businesses hand out free items for all kinds of reasons, and summer often brings more opportunities to do so. Company shirts for employees volunteering at a community event. Branded water bottles or tote bags at a local fair, golf outing, parade, or customer appreciation event. Small gifts for employees during summer celebrations. Donations to nonprofits, [&hel

IRS Shifts Toward Electronic Payments and Refunds: What Taxpayers Should Know

The IRS is moving forward with a significant change in how tax refunds are issued and how payments are received. Under Executive Order 14247, the federal government is transitioning away from paper checks in favor of electronic payment methods. The goal is to improve security, reduce fraud risk, and streamline processing for both taxpayers and […]

The Fine Print this Holiday Season: How States Tax Gift Certificates

As holiday shopping picks up, many businesses and organizations turn to gift cards and certificates as a simple way to say, “thank you.” But when it comes to sales tax, timing matters — and the rules can vary from state to state. Here’s a quick summary of how eight states treat the sale and redemption […]