Well Seasoned: Q3 2026 SALT Insights
Summary: This collection of Q3 2026 state and local tax insights explores key legislative, compliance, and federal tax developments affecting businesses and taxpayers across the country, including the introduction of Trump accounts; California and Colorado’s expansion of sales tax to SaaS products and digital software; 2026 legislative updates in Illinois and New York; sales tax compliance best practices; and a pending U.S. Supreme Court case that could reshape the scope of P.L. 86-272 for multistate businesses.
Staying ahead of state and local tax developments requires more than monitoring headlines. It demands a clear understanding of how evolving rules impact compliance, risk, and planning opportunities. These insights highlight key considerations to help businesses navigate complexity, reduce exposure, and make more informed tax decisions.
Trump Accounts Available July 4: What You Need To Know
Eligible families can now fund Trump accounts, and qualifying children may receive a one-time $1,000 federal contribution. Families should review eligibility requirements, contribution and withdrawal rules, investment restrictions, and state tax considerations before establishing an account.
California and Colorado Expand Sales Tax to SaaS and Digital Software: Why This Matters Nationwide
Beginning Jan. 1, 2027, California and Colorado will expand sales tax to many SaaS products, cloud-based applications, and electronically delivered software. Businesses should prepare now by evaluating product taxability, compliance processes, and the potential for similar digital tax changes in other states.
2026 Illinois Legislative Update
Illinois’ 2026 legislative session introduced significant changes affecting business income tax, sales tax, and digital business activities. Businesses should review updates to pass-through entity tax rules, marketplace facilitator requirements, the remote retailer amnesty program, and other legislative changes that may affect their tax and compliance obligations.
2026 New York Legislative Update
New York’s 2026 legislative session introduced significant changes affecting corporate and individual income tax, federal conformity, and sales tax compliance. Businesses and individuals with New York tax obligations should review the new conformity rules, updated sales tax registration requirements, and other legislative changes that may affect their tax and compliance obligations.
Sales Tax Health Check: The Hidden Issues That Lead to Costly Assessments
Sales tax assessments often result from overlooked compliance fundamentals rather than major legislative changes. Businesses should regularly review nexus, product taxability, compliance processes, and audit readiness to strengthen compliance and reduce the risk of unexpected assessments.
ASAP Cruises Could Shape the Future of P.L. 86-272 for Service and Digital Businesses
A pending U.S. Supreme Court petition in ASAP Cruises, Inc. v. Wisconsin Department of Revenue raises important questions about the scope of P.L. 86-272 and when states may impose net income tax. This article explains the legal interpretations, why the case matters for multistate businesses, and how the outcome could affect state income tax treatment for service providers and businesses offering software and digital products.
KSM’s tax professionals follow tax legislation across the country. If you have questions about how these or other legislative actions might affect your business, please contact your KSM advisor or fill out the form below.
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