The July 1, 2018 Sales / Use Tax Rate changes and updates are plentiful this month. But first, there is this:
South Dakota v. Wayfair
After the U.S. Supreme Court handed down its decision in South Dakota v. Wayfair permitting states
to collect sales taxes on sellers with no physical presence in the state, states rushed to understand
what it meant for the tax base. Several states – Connecticut, Hawaii, Kentucky, and North Dakota
– already had some form of online sales tax legislation with an effective date of July 1, 2018.
Several of these states prepared their legislation with the Wayfair case pending and will likely need to make legislative tweaks and issue more guidance to retailers before they are ready to begin sales tax collections from out-of-state sellers.
Other July 1 changes in sales or use tax include:
The City of Boaz, in both Etowah and Marshall counties, raised their general Sales and Use tax by 1%.
And the City of Henegar added a new Use tax of 4%. If you are conducting business outside the corporate limits of the City of Henagar but within the police jurisdiction, the
Use tax rate is 2%.
The were changes in the Sales tax for the following:
- Crossett (Ashley county) 1.25
- Siloam Springs (Benton county) 1.375
- Greenbriar (Faulkner county) 2.50
- Maumelle (Pulaski county) 2.0
- and the county of Jefferson, 1.25
There is a new reporting code 631 for Napa county. Also, Saint Helena in Napa county, reporting code 632, increased the sales tax rate.
Our research team did some fine tuning of the tax tables for the unincorporated areas of Sacramento to reflect a 0% city rate. Please make a note when dealing with ZIP codes in Sacramento – is the address in the city limits or the unincorporated boundaries?
Changes in sales tax rates include the following Colorado cities:
- Nederland (Boulder county) is now 4% and the use tax increased to 3%
- Paonia (Delta county) is now 3%
- Monument (El Paso county) has a new PIF of 2%
- Ignacio (La Plata county) is now 3%
- Craig (Moffat county) is now 4%
Information about changes to some Special District Tax exemptions can be found here.
Our research team did some fine tuning of the tax tables for Dekalb and Fulton counties in Georgia when the ZIP is considered Atlanta. For example, outside of Atlanta, a Dekalb county rate is 4%; but inside Atlanta, the Dekalb county rate is 3%. And for Fulton county, the rate is 3.75% is outside Atlanta, but 3.0% if inside Atlanta.
The following cities have added a 1% Local Option bringing the total sales tax rate including the State’s 6% to 7%.
- Dallas Center
- De Soto
- Unincorporated areas of Dallas County
- Van Meter
- West Des Moines
Illinois tops the list of most rate changes this month. For all the details, you can click this Illinois DOR Bulletin. But here is a summary for you.
Cities reporting changes (all increases) are:
- City of Canton in Fulton County increased by .50%
- City of Bartlett in Cook / DuPage / Kane Counties increased by 1% in each location.
- Carbon Cliff (Rock Island County) +.25%
- Carol Stream (DuPage County) +.25%
- Clay City (Clay County) +1.0%
- Deer Park (Cook and Lake Counties) +.25%
- East Peoria (Tazewell County)+.25%
- Elgin (Cook and Kane Counties) +.25%
- Findlay (Shelby County) +1.0%
- Geneva (Kane County) +.50%
- Glen Elllyn (DuPage County) +.25%
- Hinckley (DeKalb County)
- Kankakee (Kankakee County
- LaSalle (LaSalle County)
- Maple Park (DeKalb and Kane Counties) +1.0%
- Naperville (DuPage and Will Counties) +.25%
- Norridge (Cook County)
- Northbrook (Cook and Lake Counties) +.25%
- Northfield (Cook County) +.25%
- Shabonna (DeKalb County)
- Springfield (Sangamon County)
- Waukegan (Lake County)
- Washington (Tazewell County)
There are two county-wide changes in Illinois for Richland County and Woodford County. Each increased 1.0% for the County School Tax.
Cities reporting changes are Abilene; reducing their sales tax to .75%; Attica is increasing their rate to 2%; and Sylvia is implementing a first time sales tax rate of .5%..
- Butler County, located just outside Wichita, is eliminating their 0.25% sales tax. This affects thirteen cities, including El Dorado, Augusta, and Andover.
- Marion County, another county bordering Wichita, is reducing their 1.5% sales tax to a flat one percent. This will impact twelve cities, including Marion, Burns, and Lost Springs.
- Neosho County is raising their sales tax from 1% to 1.75%. This affects seven cities, including Chanute and St. Paul.
Remember that 1% Sales tax rate that was approved in 2016 and expiring on June 20, 2018? The Louisiana House of Representatives voted 74-24 for a new sales tax rate of 4.45 percent after over a year of disagreement. The new rate is effective July 1st and will stay in place until July 2025.
Cities sales tax rates changes include
- Cottonport (Avoyelles Parish)
- Haynesville (Claiborne Parish)
- Simsboro (Lincoln Parish)
- Lecompte (Rapides Parish)
- Gramercy (Saint James Parish)
- Lutcher (Saint James Parish)
The following counties imposed a local option use tax at the same rate as the county’s sales tax.
- New Madrid County Use tax will now be 1.5%
- Texas County Use tax will now be 1.88%
Holt County has extended the existing .5% county capital improvements sales tax. This also applies to the county’s local use tax.
New Mexico changes
New Mexico does not have a sales tax. It has a gross receipts tax instead. Nevertheless, the changes as of July 1st include:
- Albuquerque (Bernalillo County)
- Cimarron (Colfax County)
- Corrales (Sandoval County)
The Okmulgee county sales tax rate increased from 1.25% to 1.583%.
The following cities in OK have also have sales and/or use tax rate increases as of July 1st.
- Wilson (Carter County) – increase to 4%
- Loyal (Kingfisher County) – increase just the sales tax to 4%
- Stonewall (Pontotoc County) – increase just the sales tax to 4%
- Weatherford (Custer County) – increase to 4.5%
- Boley (Okfuskee County) is now adding a USE tax of 5% where it had none before.
South Dakota changes
The cities of Roslyn and Rosholt have increased rates of 3% and 2% respectively.
Hickory Creek in Denton County reduced the sales & use tax for the Municipal Street Maintenance and Repair (SMR) from 2.0% to 1.75%.
The Killington local option sales tax rate of 1% that was effective as of October 2008, has been rescinded as to July 2, 1018 decreasing the total sales tax rate to 6%.
Washington State Changes
Effective July 1, 2018, the City of Grand Coulee will establish a Transportation Benefit District (TBD). Sales and use tax within the City of Grand Coulee will increase two-tenths of one percent (.002). The tax will be used for transportation services. Click here for more information.
Businesses must collect the appropriate new rate of sales tax for retail sales and services provided within the City of Grand Coulee (1305). Persons or businesses within the City of Grand Coulee will be subject to the new tax rate for reporting use tax on items purchased for their personal or business use if sales tax has not been paid.
Effective July 1, 2018, local sales and use tax within the City of Olympia will increase one-tenth of one percent(.001). The tax will be used for housing and related services. For details can be found here.
West Virginia Changes
The State of WV Sales Tax rate is 6% – higher than most state rates. But that is because there are relatively few local sales taxes. In fact there are only 40 local tax rates out of a possible 230 municipalities…until now…there are 4 new local taxes that are adding 1% to the state rate effective July 1st.
According to the West Virginia State Tax Department, all vendors and sellers that do business in a municipality with local tax must collect and remit it in addition to the state sales tax.
Sales Tax is Hard!
Let us help make it a bit easier. Have you checked out our Sales and Use Tax Rates By State page on our Web site? Just click on a state in the map and find the basics: state rate, use tax rate, other oddities, and information such as is shipping is taxable, and a link to the state’s department of revenue (DOR).
We also have a page for taxes by Canadian Provinces.
This information is provided at no charge to get you started with the basics for each state.
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Direct E-mail: TeresaF@Zip2Tax.com
Direct Phone : 1-866-492-8494
Teresa Farnsworth is the Account Manager at Zip2Tax. She works closely with her clients to make sure they have just what they need to collect the right amount of sales or use tax in the U.S. and Canada.