EXPECT TO PAY STATE SALES TAX on top of tariffs in California, Illinois, and Washington — and probably more states. Those three states have clarified that Trump administration tariffs on most imported goods will be baked into sales tax charged, and tax practitioners are looking to more states to offer guidance.
- “A handful of states have opined on the sales tax treatment of tariffs,” said Charles Maniace of sales tax compliance company Sovos. “Whether the seller overtly passes that cost on to the customer or includes that additional cost as part of cost of goods sold reflecting an increase in ...