Jurisdictions in the U.S. were churning out changes in their sales tax rates at a somewhat slower pace in the first half of 2018 than in the same period last year, according to the Vertex 2018 Mid-Year Sales Tax Rate Report. Tax executives may be hoping it’s the beginning of a trend, but it’s doubtful they’ll be spending too much time celebrating. They’ve got their hands full dealing with the changes – 318 of them all told – while at the same time keeping an eye on developments coming out of the Supreme Court’s South Dakota v. Wayfair ruling.
As Vertex Chief Tax Officer-Transaction Tax Michael Bernard pointed out, the Wayfair decision poses significant challenges for retailers that sell remotely into jurisdictions where they’re not currently collecting and reporting taxes. “These companies should immediately review their current sales tax processes and supporting technology to make sure they can accommodate any new requirements that now apply to their online sales,” he emphasizes.
The continuous flow of tax rate adjustments, as detailed in our mid-year report, also underlines the need for that tech review.
Other interesting figures from the report include:
- 6,414: the number of new and changed sales and use tax rates over the past 10 years
- 12.9 percent: the country’s highest combined sales tax rate (Tuba City, AZ)
- 10.0361 percent: the combined national sales tax rates average:
We’re happy to send you a copy of our full report; please email me if you’re interested: email@example.com.
Please remember that the Tax Matters provides information for educational purposes, not specific tax or legal advice. Always consult a qualified tax or legal advisor before taking any action based on this information.