Higher sales taxes in Mexico creating more business for American retailers
Higher sales taxes
American retailers are starting to see a sales boost thanks to a higher sales taxes in Mexico. Mexican lawmakers voted to increase the sales tax rate for Mexican states on the U.S. border. They increased the sales tax rate from 11% up to 16%.
Lawmakers said this increase was necessary because it would make taxation fairer across Mexico plus residents in these areas have higher incomes and can afford to pay more. However, perhaps an unintended side effect is that Mexicans are finding it more affordable to shop in the United States. In comparison, the sales tax rate in Texas is only 8.25%, nearly half what border residents would pay in Mexico.
Lucinda Rowlands has been the general manager at Zip2Tax since 2010. She has extensively researched sales and use tax regulations in order to help small businesses navigate complicated tax rules.