New Sales Tax Report Shows a Decrease in Rate Changes in 2018

  • February 19, 2019

Vertex Details Notable Standard State Sales Tax Statistics

King of Prussia, PA

According to the annual End-of-Year Tax Rate Report issued by Vertex Inc., a leading provider of tax technology and services, there were 619 standard sales tax rate changes in 2018, a decrease from the same period in 2017. In addition, the report shows there have been 5,886 new and changed standard sales tax rates over the past 10 years.

“Despite a decrease from 2017, tax professionals still had to manage more than 600 standard sales tax rate changes, as well as new reporting requirements following the South Dakota v. Wayfair decision. The U.S. indirect tax landscape continues to become even more complex,” said Bernadette Pinamont, Vertex vice president of tax research. “The burden of compliance has intensified as states started establishing post-Wayfair economic nexus thresholds, as well as initiating separate returns for out-of-state retailers.”

The Vertex 2018 End-of-Year Tax Rate Report lists four standard state sales tax changes in 2018:

  • Effective January 1, 2018, New Jersey decreased its rate from 6.875 percent to 6.625 percent.
  • Guam increased its Business Privilege Tax from 4.000 percent to 5.000 percent, effective April 1, 2018.
  • Effective July 1, 2018, Louisiana decreased its rate from 5.000 percent to 4.450 percent.
  • The District of Columbia increased its rate from 5.750 percent to 6.000 percent, effective October 1, 2018.

Additionally, the combined national sales tax rates average increased slightly to 10.0646 percent, up from 10.0001 percent in 2017.

  • Puerto Rico currently has the highest state sales tax rate at 10.500 percent.
  • Indiana, Mississippi, Rhode Island and Tennessee have the second highest state sales tax rate at 7.000 percent.
  • Kodiak and Wrangell, both in Alaska, and Winter Park, CO have the highest city sales tax rate at 7.000 percent. Hoonah and Selawik, both in Alaska, have the second highest rate of 6.500 percent.
  • All areas located within the Coconino County region of the Navajo Indian Reservation in Arizona have the highest combined sales tax rate of 12.900 percent. This includes Tuba City (including the surrounding areas that are in the To’Nanees’Dizi Local Government).

The report highlights ever-changing and varying standard sales tax rates across jurisdictions. In the last 10 years in the U.S. there have been:

  • 2,214 new standard sales tax rates, an average of 221 per year;
  • 3,672 standard sales tax changes, an average of 367 per year; and
  • 5,886 standard new and changed sales tax rates, an average of 588 per year.

To receive a copy of the full report outlining all standard sales and use tax rate changes for 2018, please contact: Tricia Schafer-Petrecz at tricia.schafer-petrecz@vertexinc.com or 484-595-6142.

About Vertex

Vertex, Inc. is 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 indirect tax, including sales and consumer use, value added and payroll. Headquartered in Pennsylvania, and with offices worldwide, Vertex is a privately held company that employs approximately 1,000 professionals and serves companies across the globe.

For more information follow Vertex on Twitter and LinkedIn.

Company Contact

Tricia Schafer-Petrecz, Vertex Inc.

tricia.schafer-petrecz@vertexinc.com

484-595-6142

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