Nearly 18 months after the pandemic sent states and local jurisdictions searching for emergency funding to support citizens services and economies, the same localities are making transaction tax a larger part of the revenue streams. Thankfully, due to federal aid, most states continue to weather the economic and fiscal challenges they face because of the pandemic. However, without the guarantee of more money from Congress, states and other local districts and jurisdictions are looking for ways to build up their revenue streams to fund operations.
Broadening the tax base through new transaction taxes or raising transaction tax rates is proving to be a popular way to plug revenue gaps.
Mike Bernard, Chief Tax Officer at Vertex, discusses the ongoing pandemic landscape and its complex development, and how finding a technology partner to track and integrate every applicable tax change is critical to compliance and avoiding costly audits.