Recent court decisions involving tariffs imposed under IEEPA have created new questions and potential opportunities for businesses with significant import activity. While many companies are focused on possible federal customs refunds, there may also be an overlooked opportunity to recover related state sales and use tax.
Why This Matters
If tariff costs were included in the purchase price used to calculate sales or use tax, a customs refund may be only part of the recovery story.
For businesses with high import volumes, multistate operations, or complex supply chains, the dollars can add up quickly. Yet these opportunities are often missed when customs and state tax analyses are handled separately.
Some of the most important questions include:
• Were tariff costs included in the taxable purchase price?
• Who was responsible for the tariff on the transaction?
• Does the state allow a corresponding refund or adjustment?
This issue may be especially relevant for manufacturers, distributors, healthcare organizations, energy companies, logistics providers, and other businesses with meaningful import-related spend.
Now May Be the Right Time to Take a Closer Look
State refund statutes can close quickly. Companies evaluating the impact of invalidated tariffs should also consider whether related sales and use tax positions deserve review before potential opportunities expire.
A focused review can help identify whether additional recovery may be available based on tariff-related costs, transaction structure, and state tax treatment.
If your business imported significant goods, now may be the time for a focused conversation. We can help you quickly assess whether a deeper review is warranted and where potential recovery opportunities may exist.