Sales and/or use tax rates have changed in 12 states in Zip2Tax products since September 2016.
ZIP code changes too….
It’s generally accepted that there are around 11,000 sales tax jurisdictions across this great and diverse country of ours. This fact alone would seem to be a fairly reasonable argument for the outsourcing of sales and use tax rates from a company such as Zip2Tax. As the head of marketing for Zip2Tax I am always trying to understand our customer’s needs better. I found myself wondering about the sales tax change frequency for all these jurisdictions. I mean, 11,000 rows in a document might be manageable if they only changed their rates every few years or so, right?
So I sat down and with my trusty Excel spread sheet and a large cup of strong coffee and started going back through our research documentation counting the number of months that there had been any sales tax changes in each state. I wanted to determine which states had the highest sales tax change frequency. I sampled a three-year period from December 2015 going back through January 2013.
… fully one-third of the time that these states CAN make sales or use tax rate changes, they DO.
When the numbers were crunched I had some surprises in store, to be sure. For one, the states that provide Zip2Tax with the most new customers have no obvious correlation with which states had the highest sales tax change frequency. In fact, California and New York were only slightly above average.
The standout in this sample was Alabama which turned out to be far and away the leader with changes in 30 out of the 36 months – that’s 83% of the time. This also helped to dash my hopes of discovering a hotbed of customer need for our product since Alabama has so far not proven to be a great source of new business.
Arizona came in second with 14 changes over that same period. Georgia, Louisiana, Oklahoma and Texas all tie for third place with 13 sales tax rate changes over 36 months. That translates to mean that fully one-third of the time that these states CAN make sales or use tax rate changes, they DO. Not to overstate the obvious, but that is more frequently than quarterly updates.
… more than two-thirds, updated that tax a minimum of once a year, and by the end of 3 years, 86% of the states had made changes…
In fact, 68% of the states that collect a sales tax, that’s more than two-thirds, updated that tax a minimum of once a year, and by the end of 3 years, 86% of the states had made changes.
So as I drained the last of my cold coffee I felt some gratification in that even though sales tax will remain an extremely complex moving target in nearly all 50 states, at least it should mean a steady supply of customers for sales tax rate providers like Zip2Tax for the foreseeable future.
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There are sales tax updates in Alabama, Arkansas, Arizona, Colorado, Florida, Georgia, Illinois, Kansas, Louisiana, Minnesota, Missouri, North Dakota, New Mexico, Nevada, Ohio, Oklahoma, South Dakota, Texas and Utah effective Jan. 1st.
In Alabama, tax rates changed for Rockford, Luverne and Waterloo.
In Arkansas, tax rates changed for Bald Knob, Brinkley, Gillham, Harrisburg, Viola and Crittenden County.
In Arizona, tax rates changed for Apache Junction, Phoenix and Prescott Valley.
In Colorado, tax rates changed for Bayfield, Bennett, Fraser, Lyons, Ouray, the Counties of Alamosa and Chaffee, Gunnison Valley RTA, Montezuma County Hospital District, Colorado Springs, Crested Butte and Greeley.
In Florida, tax rates changed for the Counties of Jackson, Walton, Hernando and Saint Johns.
In Georgia, tax rates changed for Hancock County.
In Illinois, tax rates changed for Morton Grove, Posen, Stickney, Bellwood, Bloomington, Herrin, Hopkins Park, Matteson, Shorewood and Cook County.
In Kansas, tax rates changed for Shawnee.
In Louisiana, tax rates changed for Folsom, Lake Charles and Merryville.
In Minnesota, tax rates changed for Rochester and the Counties of Otter Tail and Freeborn.
In Missouri, tax rates changed for Carthage, New Madrid County, Chillicothe, Holt County, Saline County and Aurora.
In North Dakota, tax rates changed for Alexander and Center.
In New Mexico, tax rates changed for Maxwell, Springer, De Baca County, Eddy County, Vaughn, Lincoln County, Mora County, Otero County, Jemez Springs, Farmington and Kirtland.
In Nevada, tax rates changed for Clark County.
In Ohio, tax rates changed for Portage County.
In Oklahoma, tax rates changed for Bartlesville, Gore, Hollis, Norman, Del City, Marshall County and Pittsburg County.
In South Dakota, tax rates changed for Astoria.
In Texas, tax rates changed for Corral City and Goliad.
In Utah, tax rates changed for Dutch John.
There were 13 states with ZIP code changes effective after December 2015 including California, Connecticut, Florida, Iowa, Indiana, Massachusetts, Michigan, Missouri, Montana, New Jersey, Oklahoma, Texas and West Virginia. A PDF document enumerating ZIP code additions and deletions can be made available upon request.
Sales and use tax rates have changed in 16 states in Zip2Tax products since September 2015.
In Alaska, tax rates changed for Sitka, Skagway, Seldovia and Whittier.
In Alabama, tax rates changed for Tallapoosa County, Grove Hill, Fayette, Evergreen and Dodge City.
In Arkansas, tax rates changed for Brinkley, El Dorado, and Western Grove.
In California, tax rates changed for Greenbrae and Monterey.
In Kansas, tax rates changed for Andover, Belleville, Buhler, Cherryvale, Eudora, Haven, LaCrosse, Lecompton, Meriden and Bourbon County.
In Louisiana, tax rates changed for Folsom.
In Minnesota, tax rates changed for Lyon and Scott Counties.
In Missouri, tax rates changed for Dent County, Salem, Henry County, Laclede County, New Madrid County, Sedalia, Bertrand, Bethany, Concordia, Country Club Hills, Crystal City, Fair Play, Galena, Hazelwood, Kirkwood, Miner, Rolla, St. John, Stanberry and Tipton.
In North Dakota, tax rates changed for Mandan.
In Nebraska, tax rates changed for Lincoln and Chadron.
In Ohio, tax rates changed for Lake County.
In Texas, tax rates changed for Stowell, Winnie, Rocksprings, Ropesville, Stratford, Gustine, Combes, Deer Park, Granger, Lake Dallas, Panhandle, Santa Rosa, Sonora, Southlake, White Deer and Yorktown.
In Utah, tax rates changed for Murray and Logan.
In Vermont, tax rates changed for Colchester.
In Washington, tax rates changed for Tumwater TBD.
In Wyoming, tax rates changed for Weston County.
There were 25 states with ZIP code changes effective after September 2015 including Alaska, Arizona, Colorado, DC, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Maryland, Missouri, North Dakota, Nebraska, New Jersey, Nevada, Ohio, Pennsylvania, South Dakota, Tennessee, Texas, Virginia and West Virginia.A PDF document enumerating ZIP code additions and deletions can be made available upon request.
For September’s changes click here.
Do you know the validity period of your exemption certificates? Did you know that each state treats them differently and that you should review them periodically to make sure they are still good?
It is a good business practice to periodically review exemption certificates because quite a few states claim their exemption certificates are good until the business has a change, the business closes, or the certificate is revoked. You won’t know if these conditions are met unless you check with your customers and vendors regularly and request updated exemption certificates from them.
Some states have no stated expiration for their exemption certificates but they recommend regular or periodic updates. In these cases we listed the least amount of time between recommended updates. In cases where the state listed “good until the exemption no longer applies” we stated that there was no expiration date. Other states note that exemption certificates are good forever however “exempt status must be renewed”, or they “recommend” updates. In these cases we noted the recommended update or renewal timeframe.
|Alabama||AL||Till Changed Or Revoked|
|Alaska||AK||NA – No Certificates|
|Arizona||AZ||Date On Certificate|
|Arkansas||AR||NA – No Certificates|
|California||CA||Till Changed Or Revoked|
|Delaware||DE||NA – No Certificates|
|District Of Columbia||DC||Till Changed Or Revoked|
|Georgia||GA||Till Changed Or Revoked|
|Hawaii||HI||Till Changed Or Revoked|
|Kansas||KS||Till Changed Or Revoked|
|Kentucky||KY||Till Changed Or Revoked|
|Maine||ME||Till Changed Or Revoked|
|Mississippi||MS||NA – No Certificates|
|Montana||MT||NA – No Certificates|
|New Hampshire||NH||NA – No Certificates|
|New Jersey||NJ||5 Years|
|New Mexico||NM||No Expiration|
|New York||NY||Till Changed Or Revoked|
|North Carolina||NC||No Expiration|
|North Dakota||ND||No Expiration|
|Oregon||OR||NA – No Certificates|
|Rhode Island||RI||No Expiration|
|South Carolina||SC||Till Changed Or Revoked|
|South Dakota||SD||1 Year|
|Tennessee||TN||Till Changed Or Revoked|
|Virginia||VA||Till Changed Or Revoked|
|West Virginia||WV||1 Year|