According to the yearly sales tax rate study issued today by Vertex Inc., the leading provider of corporate tax solutions, the number of sales and use tax rate changes in the U.S. for year 2014 was 491, down from 2013 when there were 609 changes. State sales tax rates remained unchanged in 2014, and for the first half of 2015. However, there were 207 sales and use tax rate changes in just the first two quarters of 2015, up from 159 in the first six months of 2014.
“While the numbers for the first half of this year are actually higher than in 2014, the most remarkable pieces of news on the tax rate front so far this year come from Puerto Rico,” said John Minassian, Vice President of Tax Content Development for Vertex Inc. “Puerto Rico passed a sales tax increase to 11.5 percent from 7 percent including a local one percent rate that is consistent across the commonwealth and went into effect on July 1. The U.S. territory also passed a 4 percent tax on professional services which are currently exempt — this new tax will take effect on October 1, 2015. However, the biggest news is that Puerto Rico will transition to a value-added tax (VAT) effective April 1, 2016. This represents the first VAT to date in any U.S. territory or possession."
Noteworthy statistics from the Vertex 2014 Sales Tax Rate Report include:
Indiana, Mississippi, New Jersey, Rhode Island and Tennessee have the highest state sales tax rates at 7.000%. Minnesota has the second highest state rate at 6.8750%.
Kodiak, Alaska and Wrangell, Alaska have the highest city sales tax rate at 7.0000%. Hoonah, AK and Selawik, AK have the second highest rate of 6.5000%.
Tuba City (including the surrounding areas that are in the To’Nanees’Dizi Local Government), Coconino County, AZ has the highest combined sales tax rate of 12.600%.
Since 2005, there have been 2152 new sales and use taxes, an average 215 per year. (These numbers include January 1, 2005-December 31, 2014.)
Since 2005, there have been 4182 sales and use tax changes, an average of 418 per year. (These numbers include January 1, 2005-December 31, 2014.)
The combined number of new and changed sales and use tax rates since 2005 is 6334, an average of 633 per year. (These numbers include January 1, 2005-December 31, 2014.)
Since 1978, Vertex, Inc., has been a leading provider of tax technology and services, enabling companies of all sizes to realize the full strategic potential of the tax function by automating and integrating tax processes, while leveraging advanced and predictive analytics of tax data. Vertex provides cloud-based and on-premise solutions that can be tailored to specific industries for every major line of tax, including income, sales and consumer use, value added and payroll. Headquartered in Pennsylvania, and with offices worldwide, Vertex is a privately held company that employs over 900 professionals and serves companies across the globe.