Multi-State – Hundreds of sales tax changes happened last year

Accounting Today
By: Michael Cohn  – Published – February 21 2017, 5:07pm EST

A total of 556 sales and use tax rate changes occurred in 2016, according to a new report.

The report, from sales tax software developer Vertex, identified two significant state sales tax increases last year: in Louisiana, which hiked its rate from 4 to 5 percent last April, and South Dakota, which upped its rate from 4 to 4.5 percent in June. On the other hand, California lowered its rate from 6.5 to 6.25 percent, though taxpayers experienced no change in their total combined rate thanks to tax rate changes across all of the Golden State’s counties.

The territory of Puerto Rico currently has the highest state sales tax rate at 10.5 percent. Last year Puerto Rico repealed the Value Added Tax legislation it tried to institute in 2015 as a replacement for its sales and use tax to help the island’s troubled economy. Instead it decided last May to go back to the sales and use tax.


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https://www.accountingtoday.com/news/hundreds-of-sales-tax-changes-happened-last-year