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    Checkpoint News (Thomson Reuters)
    January 2, 2026 (about 2 months ago)

    Experts Talk State Tax Issues, OBBB Conformity

    Featured image for: Experts Talk State Tax Issues, OBBB Conformity
    United States VAT News • Checkpoint News (Thomson Reuters)

    Summary

    The webinar highlighted the impact of the One Big Beautiful Bill Act on state budgets, the ongoing Streamlined Sales and Use Tax Agreement, and specific sales‑tax challenges in California and Illinois. Key issues include federal conformity decisions, new California TTA rules, and Illinois’ remote‑seller amnesty and Chicago’s personal‑property lease tax adjustments.

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    Key Facts

    • •On July 4 2025 the One Big Beautiful Bill Act was signed; many provisions take effect Jan 1 2026, forcing states to decide on conformity for federal rules on business interest deductions (IRC §163(j)), bonus depreciation (IRC §168(k)), and foreign income treatment; 13 states have already issued guidance.
    • •The Supreme Court’s South Dakota v. Wayfair decision eliminated the physical presence requirement for remote seller nexus, increasing the importance of the voluntary Streamlined Sales and Use Tax Agreement (SSUTA) for uniform definitions and simplified administration.
    • •California’s CDTFA proposes regulations to codify court rulings that software can be an intangible part of a Technology Transfer Agreement, creating pre‑certification processes for OEMs to determine the nontaxable percentage of embedded software.
    • •Illinois will offer a second amnesty program for remote sellers in 2026 with a simplified 9% tax rate for general merchandise; Chicago’s personal‑property lease transaction tax rose from 5.25% to 9% last year, then to 11% at the start of 2026, with a potential increase to 14% under current budget negotiations.
    • •The article notes that 13 states have issued legislative or administrative guidance in response to the OBBB, reflecting widespread uncertainty and the need for timely state action.
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    Read Full Article at Checkpoint News (Thomson Reuters)