556 Changes to Rates Across US Jurisdictions in 2016
As noted in the annual Sales Tax Rate Report issued today by Vertex, Inc., the leading provider of corporate tax solutions, there were 556 sales and use tax rate changes in the US in 2016.
Similar to the previous year, 2016 saw two significant state sales tax increases: Louisiana increased its rate from 4 percent to 5 percent, effective April 1, 2016, and South Dakota increased its rate from 4 percent to 4.5 percent, effective June 1, 2016. California lowered its rate from 6.5 percent to 6.25 percent, although taxpayers saw no change in their total combined rate due to tax rate changes across all counties.
“The significant number of tax changes made every year across thousands of jurisdictions pose a challenge to companies attempting to track these changes and manage the growing complexity of tax rules,” said John Minassian, vice president of tax content development at Vertex. “It’s become essential for tax departments to use advanced solutions that provide ongoing updates regarding rates and rules to ensure accurate and compliant sales tax calculation.”
Notable statistics from the Vertex 2016 Sales Tax Rate Report include:
Puerto Rico currently has the highest state sales tax rate at 10.5 percent. The Value Added Tax legislation has officially been repealed, and Puerto Rico will continue with the currently imposed Sales and Use Tax Imposition. Indiana, Mississippi, New Jersey, Rhode Island and Tennessee continued to impose the second highest sales tax rate at 7percent.
Kodiak, Alaska; Wrangell, Alaska; and Winter Park, Colorado, have the highest city sales tax rate at 7 percent. Also in Alaska, the cities of Hoonah and Selawik have the second highest rate of 6.5 percent.
Tuba City (including the surrounding areas that are in the To’Nanees’Dizi Local Government), in Coconino County, Arizona, has the highest combined sales tax rate of 12.9 percent
Since 2007, there have been 2,172 new sales and use taxes, an average 217 per year.
Since 2007, there have been 3,985 sales and use tax changes, an average of 399 per year.
The combined number of new and changed sales and use tax rates since 2007 is 6,157, an average of 616 per year.
Vertex’s accredited tax research professionals provide up-to-date tracking of tax rates and rules, enabling optimal tax performance by enhancing the accuracy and compliance of tax calculations, management and reporting.
To receive a copy of the full report outlining all sales and use tax rate changes in 2016, please contact: Tricia Schafer-Petrecz at firstname.lastname@example.org or 484-595-6142.
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.