May 29, 2026 release for version 26.05.1
What’s new
New forms
- Idaho Local, City of Tetonia, Local Option Tax
Special notes
- ONESOURCE Sales and Use Tax Compliance Version 26.06.1 is scheduled for release on June 30, 2026.
- Jet Fuel Tax and Jet Fuel Use Tax have been added as supported tax types for the Arizona TPT-2 and TPT-EZ.
What’s changed
Forms revisions
If a multiple location version of a return listed below exists in ONESOURCE Sales and Use Tax Compliance, the revisions have been applied to that return as well.
- Colorado Local, City of Aurora, Monthly Sales Return
- Louisiana Local, Lafourche Parish, Sales & Use Tax Report
State notes
All of the following changes were incorporated into the applicable returns and accompanying schedules for that state or locale. Listed changes are effective
May 1, 2026
, unless noted otherwise.Alabama: State Level
Alabama suspended the state portion of sales and use taxes on food for the period of May 1, 2026, through June 30, 2026, per Act 2026-604. This will be reflected in ONESOURCE with temporary 0.0% rates for Food Sales, Food Consumer Use, and Food Sellers Use tax types. Returns must continue to report all gross sales of qualifying food items in total gross proceeds on the state tax return and then deduct qualifying food sales from the amount used to calculate state sales tax.
Local tax reporting continues at each locality's applicable rate.
Alabama Locals
Bayou La Batre and Bayou La Batre Police Jurisdiction changed administration from Avenu to ALDOR.• Eva changed administration from Avenu to ALDOR.• Selma and Selma Police Jurisdiction changed administration from Avenu to ALDOR.
Alabama Local Tax Forms 9501 and RDS/Avenu – Discount Calculation Update
The discount calculation for Alabama local sales tax return forms 9501 and RDS/Avenu has been updated in this release to more accurately reflect current policy.
Previously, the 5% discount on the first $100 of sales tax due was applied independently to each sales tax type filed. Since Alabama locals support up to four sales tax categories — Grocery, Manufacturing, General, and Auto — clients filing multiple types could have the 5% threshold applied separately per type, resulting in a slight over-calculation of the allowable discount.
Going forward, the 5% discount on the first $100 will be prorated across all applicable sales tax types within the same jurisdiction code, rather than applied in full to each type individually. The subsequent 2% discount continues to apply to the remaining sales tax due up to the allowable maximum.
Clients who file only one sales tax type for a given jurisdiction will see no change in their calculated discount.
To provide transparency into how the discount is now calculated, a new
Discount Detail
link has been added to both the 9501 and Avenu returns.Because the eFile submission for these returns includes only gross sales and deductions, the efile format is not impacted by this change and remains unchanged.
Alabama Local Discount Calculation Example – Greenville, AL (Locality Code 9435)
Line item | Grocery | General | Total |
|---|---|---|---|
Gross Sales | $25,000.00 | $40,000.00 | $65,000.00 |
Deductions | $5,000.00 | $4,000.00 | $9,000.00 |
Net Taxable | $20,000.00 | $36,000.00 | $56,000.00 |
Tax Rate | 4.5% | 5.5% | |
Tax Due | $900.00 | $1,980.00 | $2,880.00 |
Previous Discount Calculation
Line item | Grocery | General | Total |
|---|---|---|---|
5% on first $100 | $5.00 | $5.00 | $10.00 |
2% on remaining tax due | $16.00 | $37.60 | $53.60 |
Total Discount | $21.00 | $42.60 | $63.60 |
Updated Discount Calculation
Line item | Grocery | General | Total |
|---|---|---|---|
Share of Total Tax Due | 31.25% | 68.75% | 100% |
Prorated 5% Threshold | $31.25 | $68.75 | $100.00 |
5% on Prorated Threshold | $1.56 | $3.44 | $5.00 |
2% on Remaining Tax Due | $17.38 | $38.23 | $55.61 |
Total Discount | $18.94 | $41.67 | $60.61 |
Tax rate changes
All of the following tax rate changes were incorporated into the application. Listed changes are effective May 1, 2026, unless noted otherwise.
Alaska Local
Remote Seller Tax had been made for the following jurisdictions:
- The City of Pelican remote seller tax rate increased from 4.000% to 6.000%.
South Carolina
- Williamsburg County imposed Capital Projects Tax in 1.000%
Application updates
D2C Merge – Advanced
A new
Advanced
request type with additional filter groups for Merchant Roles (Buyer, Seller, Middleman), Accrual Methods (No Accrual Method, Accrue Total Tax, Accrue Variance), and Tax Directions (No Tax Direction, Input, Output). All filter values are selected by default and can be changed as needed. This enhancement supports:- Vendor Charge Tax – Partial Use Tax Accrual Reporting
- Canada Purchase/Reverse Charge Use Cases
D2C Merge – Detailed
The new Detailed Request type with additional filter groups available: Merchant Roles (Buyer, Seller, Middleman), Accrual Methods (No Accrual Method, Accrue Total Tax, Accrue Variance), and Tax Directions (No Tax Direction, Input, Output). All new filter values are pre-selected by default and can be modified as needed.
The Region selection is constrained to a single region via a dropdown. Once a region is selected, the Tax Codes list is populated and scoped to that region only.
D2C Merge – Tax Code Filtering
A new Tax Codes filter has been introduced and is now available for all Request Types: Standard, Advanced and Detailed. Tax Code inclusion and exclusion follow a unified and streamlined logic:
- When no Tax Codes are explicitly selected, all Tax Codes are implicitly included, and the Exclusions filter is applied, with 14 predefined Tax Codes excluded by default.
- When one or more Tax Codes are selected, only the selected Tax Codes are included, and the Tax Codes exclusions filter is hidden.
Additionally, Region selection is required to view and apply Tax Codes, and all Tax Codes are strictly scoped to the selected region, ensuring accurate and context-specific filtering.
The Detailed Request Type introduces a more structured and controlled approach to Tax Code selection:
- Region selection is mandatory and limited to a single region via a dropdown.
- Tax Codes are dynamically populated only after selecting a region.
- The Tax Codes displayed are scoped exclusively to the selected region.
- Users must explicitly select at least one Tax Code to proceed with the merge.
Balance Import – Expanded Error Correction Editing
The Balance Import Error Correction experience has been extended so users can now edit all fields surfaced from their Balance Import templates. Editability is fully aligned with all columns displayed based on BI template mappings, providing a consistent and unrestricted editing experience across scenarios. These capabilities are supported for both Binder-level and Workarea-level Balance Import.
What’s fixed
Iowa
Returns with no taxable sales or use amounts will now print as a zero return with zero amounts on lines 5, 9, and 18.
Washington
Misclassification of resale transactions results in incorrect reporting on the Retailing line, potentially overstating taxable sales and causing confusion in tax calculation outputs. A fix has been implemented and will be available.
Louisiana Locals
The city of Merryville rate has been corrected from 3.250% to 3.000& for Beauregard Parish.
What’s coming
Louisiana Combined Return
The new Louisiana Combined Return is now available on the Parish E-file website. Due to the large and complex scope of this enhancement, we are currently evaluating the priority and availability of resources and do not currently have an ETA as to when these changes will be implemented into the ONESOURCE Sales and Use tax software. In the interim, clients can file their parish returns manually through the Parish E-file website or upload the current .txt file through Sales Tax Online. State returns can still be filed separately in our software using the direct transmission method, or by downloading the .xml file and uploading it through the LaTAP portal.