How we help you
A continually changing state tax landscape makes it tough to stay informed and effectively plan for the future. You need a tax advisor who can guide you and partner with you to reach your goals — whether that’s understanding compliance requirements or avoiding an overpayment of tax.
Develop a comprehensive strategy to get your company compliant.
Gain proactive guidance to satisfy long-term business objectives.
Manage your tax obligation, minimize your tax liability and leverage statutory exemptions.
Mitigate risk and remediate liabilities.
Provide clarity around SALT and minimize your SALT tax exposure
Wipfli’s state and local tax advisors help you stay up to speed with SALT laws and clarify the increasingly complex statutes. From state and local tax consulting to compliance assistance, we implement and manage solutions to create competitive advantages, mitigate your SALT tax exposure and minimize tax.
Explore our state and local tax services
All states that have a sales tax have implemented economic nexus laws, and state regulators are aggressive in their efforts to audit filers and root out non-filers.
By creating solutions that align with your business objectives, Wipfli helps you identify the possible impact of your tax obligations, mitigate your risk and liabilities and provide you with a comprehensive strategy to get your company compliant. We assist with everything from nexus studies, voluntary disclosure agreements, utility exemption studies, taxability determinations and compliance reporting to sales and use tax audit defense, refund overpayment reviews and jurisdictional tax registrations.
Wipfli’s state income and franchise tax advisors deliver the proactive guidance you need to effectively manage risk and satisfy your long-term business objectives.
With deep experience, the Wipfli team provides assistance across a broad range of personal income tax, business income tax, franchise tax and gross receipts tax topics — including nexus studies, voluntary disclosure agreements, apportionment issues, pass-through entity tax elections, state residency, due diligence consulting, corporate income tax combined/consolidated filing issues, and audit support and defense.
Navigating tax rules and filing requirements across multiple state and local taxing jurisdictions can be overwhelming.
Wipfli’s property tax professionals have developed a comprehensive process to help you manage your tax obligation, minimize your tax liability with common-sense reporting, and leverage statutory exemptions. From personal property tax compliance to reviewing where you have filing obligations, we deliver a custom solution for your business that helps relieve the burden on your internal resources.
Unclaimed property is a growing area of financial concern for companies of all sizes and in all industries. Many state administrators have increased enforcement efforts for compliance with their unclaimed property laws and regulations.
Wipfli professionals can help you identify the potential impact of unclaimed property, mitigate risk and remediate unclaimed property liabilities. With proactive planning, our tax advisors help you create a seamless strategy to become compliant. We also provide training and support to company personnel, representation throughout audits and VDAs, and unclaimed property reporting.
Insights and resources
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Businesses that serve customers in Pennsylvania’s Philadelphia or Allegheny counties face new sales tax rules
Pennsylvania has adopted a significant change to its local sales tax sourcing rules that goes into effect on October 1, 2026. Under Act 21 of 2026, the requirement to collect local sales tax for Philadelphia County and Allegheny County is based on where the taxable product or service is delivered, rather than where the seller is located. The change applies only to the two Pennsylvania jurisdictions that impose local sales tax: Philadelphia County, which has a 2% local tax, and Allegheny County, which has a 1% local tax. Pennsylvania’s 6% state sales tax rules have not changed, but businesses that were only required to collect the state tax will have an additional local tax collection obligation when taxable sales are delivered into either jurisdiction when the new law goes into effect. How have Pennsylvania sales tax rules changed? Previously, Pennsylvania’s local sales tax rules focused on the seller’s location. If a seller’s place of business was in Philadelphia County or Allegheny County, the seller collected the applicable local tax on taxable sales, even when the customer received the product elsewhere in Pennsylvania. By contrast, sellers located outside Philadelphia County and Allegheny County collected only the 6% Pennsylvania state sales tax, even when taxable products were delivered to customers in Philadelphia County or Allegheny County. As a result, local tax was driven by where the sale originated rather than where the customer received the product. This created different tax results for similar transactions depending on whether the seller had a location inside or outside one of Pennsylvania’s local taxing jurisdictions. Act 21 changes that approach by moving the local tax collection requirements to the customer’s destination. A taxable sale delivered to a customer in Philadelphia County is subject to Pennsylvania’s 6% state sales tax plus the 2% Philadelphia County local sales tax, for a combined rate of 8%. A taxable sale delivered to a customer in Allegheny County is subject to the 6% state sales tax plus the 1% Allegheny County local sales tax, for a combined rate of 7%. For example, a Pennsylvania retailer located outside Philadelphia County that ships a taxable item to a Philadelphia County customer will now need to collect the Philadelphia County local tax. Conversely, a business located in Philadelphia County that ships a taxable item to a customer outside of Philadelphia County will no longer need to collect Philadelphia County local tax solely because of the seller’s location. How do the new Pennsylvania local sales tax changes affect businesses? For businesses with a physical presence in Pennsylvania, the change alters when local tax applies. Sellers should review where their customers receive taxable products or services, not just where the business, store, warehouse or office is located. A seller located in Philadelphia County or Allegheny County should not assume local tax applies to every Pennsylvania sale. Sales delivered outside those jurisdictions are not subject to local tax, while taxable sales delivered into Philadelphia County or Allegheny County should include the applicable local tax. Remote sellers should also be aware of the change. The analysis starts with whether they already have a Pennsylvania sales tax collection obligation, such as through economic nexus . If they do, they should evaluate whether local tax applies to taxable sales delivered into Philadelphia County or Allegheny County. The change makes customer delivery location more important for all sellers. Accurate address data and properly configured tax systems will help businesses avoid over-collecting or under-collecting local tax as Pennsylvania moves to destination-based sourcing. What should business owners do to adapt to the new sales tax rule? If you own a business that is located in Pennsylvania or has sales tax obligations there , you may be affected by the new tax rules for Philadelphia County and Allegheny County. Here’s what to do: Consult with your tax advisor. State and local tax rules are challenging to navigate on your own, so ask your tax advisor to determine if and how you are affected by the new local tax rules. Make operational updates as needed. Depending on the guidance you receive from your tax advisor, you may need to make updates to your finance, sales and billing systems, as well as train your team on the new tax rules. Review with your accounting team. Check with your accounting team to ensure that you are properly accounting for the new tax requirements. Read more Tax nexus: the state sales tax rule businesses must know Economic nexus reporting requirements reference table Gross receipts taxes: How could they affect your business?
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California expands sales tax to software: What businesses need to know
With the passage of Senate Bill 122 , California has enacted one of its most significant sales and use tax changes in years. Beginning January 1, 2027, the state will begin charging sales tax on many software transactions that historically weren’t taxed. The change is expected to generate nearly $900 million in annual revenue and will affect both software providers and businesses that purchase software in California. Here are the key provisions businesses should be paying attention to. SaaS and electronically delivered software will generally become taxable Historically, California sales tax primarily applied to transfers of tangible personal property. Many cloud-based software and electronically delivered software transactions fell outside the tax base. Starting in 2027, California will treat certain digital software products as tangible personal property for sales and use tax purposes. As a result, sales tax will generally apply to: Prewritten software delivered electronically Software accessed remotely through the cloud Software-as-a-service (SaaS) subscriptions and similar software offerings Software delivered on physical media This represents a significant shift for businesses that historically have not collected or paid California sales tax on these transactions. Not all digital products are taxable While the legislation significantly expands the taxation of software, it does not create a broad tax on all digital products. The following products generally remain outside the scope of the new law: Digital books Digital audiovisual works Video games, including those transferred electronically or accessed remotely Certain digital infrastructure offerings Cryptographically secured digital assets Custom software transactions also generally remain excluded. Certain exemptions remain available Although the law significantly expands the tax base, several important exclusions and special rules remain. Examples include: Temporary storage of software in California for deployment and use outside the state Certain software resale transactions involving “golden masters” Multiple-points-of-use provisions and credits for tax paid to other states Additional guidance is expected from the California Department of Tax and Fee Administration (CDTFA) on how these provisions will be administered. Local taxes can increase the overall tax burden The impact extends beyond California’s statewide sales tax. Because local and district taxes generally follow the state tax base, taxable software transactions may also be subject to local taxes, potentially increasing the overall tax rate depending on the consumer’s location. The legislation establishes sourcing rules designed to determine the appropriate local jurisdiction for electronically delivered and remotely accessed software. Technology transfer agreements are affected The legislation also changes the tax treatment of certain software technology transfer agreements (TTAs). For agreements entered into on or after January 1, 2027, favorable exclusions previously available for qualifying software transactions may no longer apply. In addition, certain ongoing lease arrangements may become taxable for payments due on or after the effective date. CDTFA is also expected to provide more guidance on how these provisions will be administered. Retailer relief for large sales to single customers If a retailer sells more than $5 million of taxable software or other digital products to the same customer during a calendar year, the retailer is not required to charge California tax on those sales. Instead, the purchaser becomes liable for remitting the tax on those transactions. Beginning January 1, 2028, the $5 million threshold will be based on purchases made during either the current or prior calendar year. What should businesses do now? While the new rules do not take effect until January 1, 2027, businesses should begin evaluating the potential impact now. Software providers should consider whether updates are needed to: Tax collection procedures Billing and invoicing systems Customer contracts Customer location sourcing methodologies Businesses purchasing software should evaluate: Increased sales and use tax costs Use tax accrual processes Budget impacts Multi-state software usage considerations Businesses that buy or sell software in California should review their contracts, systems and tax processes well before January 1 and monitor future CDTFA guidance as implementation details continue to develop. Read more Major updates in unclaimed property compliance Illinois’s fiscal 2027 omnibus budget bill enacts major tax changes Does your business need to pay taxes in a given state? The answer depends on nexus.
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Major updates in unclaimed property compliance
The unclaimed property compliance landscape saw significant change in 2026 as states expanded reporting obligations, adopted new rules governing digital assets and securities and revisited long-standing exemptions. At the same time, federal lawmakers increased scrutiny of state escheat practices through proposed legislation that could significantly alter the treatment of certain property types. For holders, these developments signal a growing compliance burden and a continued shift toward broader reporting requirements. Here’s a rundown of the states that have made notable changes: Arizona: SB 1336 eliminates longstanding exemptions Arizona enacted SB 1336 on June 22, 2026, repealing several long-standing exclusions from the state’s unclaimed property law. As a result, property previously exempt from reporting may now be subject to Arizona’s unclaimed property requirements, including: Gift cards and gift certificates; stored-value cards; merchandise points and loyalty rewards; frequent flyer miles; prepaid phone cards; nonrefundable tickets and de minimis property. The legislation also repeals Arizona’s business-to-business (B2B) exemption. Property that may now be reportable includes customer and vendor credit balances, accounts receivable credits, accounts payable checks, refunds, rebates and other obligations arising from commercial relationships. For many businesses, this represents a significant expansion of potential reporting obligations, particularly for companies that have historically relied on the B2B exemption to exclude outstanding credits and other commercial liabilities. The law becomes effective September 12, 2026. Because Arizona’s statutes provide limited dormancy guidance for several of these newly reportable property types, holders are awaiting additional administrative guidance on implementation and reporting requirements. Florida: SB 1452 modernizes Chapter 717 Effective immediately upon enactment on June 26, 2026, Florida’s SB 1452 introduces several important updates to the state’s unclaimed property law. Among other changes, the legislation clarifies when property becomes payable or distributable for dormancy purposes; revises the treatment of stock, equity interests and debt of business associations; and excludes certain non-freely transferable securities and worthless securities from the category of reportable intangible property. The bill is particularly important for financial institutions, brokerage firms, transfer agents and companies holding securities-related property because it provides additional guidance regarding owner activity, abandonment standards and securities reporting obligations. Digital assets and unclaimed property compliance No area of unclaimed property law evolved more rapidly in 2026 than digital assets. As cryptocurrency and other digital financial assets continue to gain mainstream adoption, states are increasingly establishing rules governing how these assets are reported, transferred, liquidated and returned to owners. Virginia: HB 798 Virginia enacted HB 798, creating a statutory framework for digital assets under the Virginia Disposition of Unclaimed Property Act. The legislation establishes definitions, reporting requirements and remittance procedures for digital assets, including digital representations of value used as a medium of exchange or store of value. The law was approved on April 13, 2026, and became effective July 1, 2026. Minnesota: HF 4188 Minnesota enacted HF 4188, which expressly incorporates virtual currency into the state’s unclaimed property regime. Key provisions include virtual currency is presumed to be abandoned after three years of owner inactivity; specific forms of owner activity prevent abandonment; holders generally must liquidate virtual currency before reporting; cash proceeds are remitted to the state, and holders receive liability protection for compliant remittances. The legislation was signed on May 27, 2026, and became effective on August 1, 2026. Maine: LD 1969 (Public Law Chapter 675) Maine enacted LD 1969, adding virtual currency to its unclaimed property law. The legislation defines virtual currency, establishes dormancy and reporting requirements and provides guidance regarding remittance obligations. The law becomes effective July 29, 2026. Louisiana: HB 1256 (Act 891) Louisiana enacted HB 1256, one of the most comprehensive digital asset escheat bills adopted to date. The bill defines digital assets to include virtual currency, cryptocurrency, stablecoins and other digital-only assets. It creates a three-year dormancy period for digital asset accounts and allows for these to be transferred in native form to a designated custodian. The law further establishes liquidation procedures and liability protections and creates reporting and custody standards unique to digital assets. The bill was signed into law on June 9, 2026, and becomes effective January 1, 2027. Federal developments to watch Federal involvement in unclaimed property increased significantly in 2026 with the introduction of the Safeguarding Americans’ Fairly Earned Retirement Act (SAFER Act). If enacted, the legislation would significantly restrict the circumstances under which states may take custody of securities, investment accounts, IRAs, digital assets, dividends and investment proceeds. Among its most notable provisions: Individual accounts generally could not be escheated without confirmation of the owner’s death. Entity-owned accounts generally would be protected until at least five years have passed without contact from an authorized representative. As of July 2026, the legislation remains pending in Congress. Should it become law, it would represent one of the most significant federal interventions in state unclaimed property law in decades. What now? The trend is clear: States are expanding the scope of reportable property while simultaneously increasing scrutiny of emerging asset classes such as cryptocurrency and digital financial assets. With multiple states adopting significant changes in 2026 and additional legislation expected in 2027, proactive compliance reviews can help minimize risk and avoid costly reporting issues. Read more Abandoned property rules: The beginner’s guide to compliance NAUPA III compliance: Is your company ready for the changes? Cryptocurrency’s next curveball: Why fintech leaders need to act now
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Tax rules vary across jurisdictions, making it easy to miss risks or opportunities. Contact Wipfli’s tax advisors for help navigating complex requirements and identifying opportunities for savings.
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With deep tax law knowledge and decades of hands-on experience, Wipfli’s tax team is ready to help you navigate the tax landscape confidently and achieve your goals.
