January 1, 2021 Sales Tax Rate Changes

Happy New Year in Sales!  Here are the changes in Sales and/or Use tax rates effective January 1, 2021.

ALASKA
State Effective Date ZIP LOCAL County New Local Rate New Total Rate
AK 12/1/2019 99629 Wasilla Matanuska Susitna 2.5000 2.5000
ALABAMA
State Effective Date ZIP LOCAL County New Local Rate New Total Rate
AL 1/1/2021 Lexington Lauderdale 3.0000 8.5000
ARKANSAS
State Effective Date ZIP LOCAL County New Local Rate New Total Rate
AR 1/1/2021 71667 Star City Lincoln 1.2500 9.7500
AR 1/1/2021 72927 Booneville Logan 2.0000 10.5000
AR 1/1/2021 72325 county-wide Crittenden 1.7500 8.2500
AR 1/1/2021 72827 county-wide Yell 1.1250 7.6250
COLORADO
State Effective Date ZIP LOCAL County New Local Rate New Total Rate
CO 1/1/2021 80727 Eckley Yuma 2.1000 5.0000
CO 1/1/2021 81639 Hayden Routt 5.0000 8.9000
CO 1/1/2021 80212 Lakeside Denver 2.8000 5.7000
CO 1/1/2021 80826 Limon Lincoln 2.7500 7.6500
CO 1/1/2021 81623 Marble Garfield 4.0000 8.9000
CO 1/1/2021 81252 Silver Cliff Custer 3.0000 7.9000
CO 1/1/2021 81410 county-wide PSI (Public Safety Improvement) Delta 0.8000 5.7000
CO 1/1/2021 80123 Southeast Jefferson LID (Littleton) Jefferson 0.4300 7.9300
CO 1/1/2021 81657 Eagle-Vail MDT Eagle 1.0000 9.4000
CO 1/1/2021 80936 Colorado Springs El Paso 3.0700 8.2000
CO 1/1/2021 80230 Denver Denver 4.8100 8.8100
CO 1/1/2021 80012 Denver Arapahoe 4.8100 8.0600
CO 1/1/2021 80022 Denver Adams 4.8100 8.5600

 

FLORIDA
State Effective Date ZIP LOCAL County New Local Rate New Total Rate
FL 1/1/2021 32656 county-wide Clay 1.5000 7.5000
FL 1/1/2021 32212 county-wide Duval 1.5000 7.5000
FL 1/1/2021 32425 county-wide Holmes 1.5000 7.5000
FL 1/1/2021 32531 county-wide Okaloosa 1.0000 7.0000

 

ILLINOIS
State Effective Date ZIP LOCAL County New Local Rate New Total Rate
IL 1/1/2021 60805 Evergreen Park Cook 1.0000 10.0000
IL 1/1/2021 62839 Flora Clay 1.0000 7.7500
IL 1/1/2021 60527 Willowbrook Dupage 1.0000 8.0000

 

KANSAS
State Effective Date ZIP LOCAL County New Local Rate New Total Rate
KS 1/1/2021 66411 Blue Rapids Marshall 2.0000 9.0000
KS 1/1/2021 67039 Douglass Butler 2.0000 8.5000
KS 1/1/2021 67663 Plainville Rooks 1.0000 8.0000

 

MINNESOTA
State Effective Date ZIP LOCAL County New Local Rate New Total Rate
MN 1/1/2021 56110 county-wide transit SALES & USE Nobles 0.5000 7.3750

 

MISSOURI
State Effective Date ZIP LOCAL County New Local Rate New Total Rate
MO 11/1/2020 rate discrepancy 64484 county-wide SALES & USE Buchanan 1.3500 5.5750
MO 1/1/2021 63901 county-wide SALES Butler 1.2500 5.4750
MO 1/1/2021 63847 county-wide SALES & USE Dunklin 1.6875 5.9125
MO 1/1/2021 64151 Kansas City SALES & USE Platte 3.2500 8.8500
MO 1/1/2021 Airport Drive SALES Jasper 2.0000 7.4500
MO 1/1/2021 63144 Brentwood USE Saint Louis 2.0000 6.2250
MO 1/1/2021 63135 Dellwood SALES Saint Louis 1.2500 8.9880
MO 1/1/2021 63131 Des Peres SALES & USE Saint Louis 1.7500 9.488/5.975
MO 1/1/2021 65459 Dixon SALES Pulaski 2.0000 7.4750
MO 1/1/2021 64801 Duquesne SALES & USE Jasper 2.5000 7.95/6.725
MO 1/1/2021 63345 Farber SALES & USE Audrain 2.0000 8.3500
MO 1/1/2021 63042 Hazelwood SALES & USE Saint Louis 2.5000 9.988/6.475
MO 1/1/2021 64040 Holden SALES & USE Johnson 2.5000 9.4750
MO 1/1/2021 64061 Kingsville SALES Johnson 1.5000 8.4750
MO 1/1/2021 65049 Lake Ozark USE Camden 2.7500 8.2250
MO 1/1/2021 not in tables Lake Ozark USE Miller 2.7500 7.9750
MO 1/1/2021 63601 Park Hills SALES Saint Francios 3.0000 9.3500
MO 1/1/2021 64050 Sugar Creek SALES & USE Jackson 2.5000 8.1/6.725
MO 1/1/2021 not in tables Sugar Creek SALES & USE Clay 2.5000 7.975/7.85

 

NORTH DAKOTA
State Effective Date ZIP LOCAL County New Local Rate New Total Rate
ND 1/1/2021 58416 Binford 246 Griggs 2.0000 7.0000
ND 1/1/2021 58053 Lidgerwood Richland 3.0000 8.0000
ND 1/1/2021 58267 Northwood Grand Forks 2.5000 7.5000
ND 1/1/2021 58492 Wimbledon Barnes 2.0000 7.0000
ND 1/1/2021 58081 Windmere Richland 3.0000 8.0000

 

NEBRASKA
State Effective Date ZIP LOCAL County New Local Rate New Total Rate
NE 1/1/2021 69343 Gordon Sheridan 1.5000 7.0000
NE 1/1/2021 68842 Greeley Greeley 1.5000 7.0000
NE 1/1/2021 68955 Juniata Adams 1.5000 7.0000
NEW MEXICO
State Effective Date ZIP LOCAL County New Local Rate New Total Rate
NM 1/1/2021 87710 Eagle Nest Colfax 2.1750 7.8833
NM 1/1/2021 87420 county-wide San Juan 1.5625 6.6875

 

OKLAHOMA
State Effective Date ZIP LOCAL County New Local Rate New Total Rate
OK 1/1/2021 73750 Kingfisher SALES & USE Kingfisher 3.0000 8.7500
OK 1/1/2021 73758 Manchester SALES & USE Grant 1.0000 6.7500
OK 1/1/2021 74740 Haworth USE McCurtain 3.5000 9.7500
OK 1/1/2021 74726 Bokchito USE Bryan 4.0000 9.0000
OK 1/1/2021 73624 Burns Flat SALES & USE Washita 3.0000 9.5000

 

TEXAS
State Effective Date ZIP LOCAL County New Local Rate New Total Rate
TX 1/1/2021 76208 Corinth Denton 1.5000 8.0000
TX 1/1/2021 79034 Follett Lipscomb 1.5000 7.7500
TX 1/1/2021 76534 Holland Bell 1.0000 7.7500
TX 1/1/2021 77640 Port Arthur Jefferson 1.3750 8.1250
TX 1/1/2021 not in tables Port Arthur Orange 1.3750 8.1250
TX 1/1/2021 76137 Watauga Tarrant 1.2500 8.0000
TX 1/1/2021 79701 county-wide Midland County Hospital District Midland 0.2500 8.2500

 

UTAH
State Effective Date ZIP LOCAL County New Local Rate New Total Rate
UT 1/1/2021 84050 Morgan City Highways Tax 0.25% Morgan 0.3500 6.4500

 

WASHINGTON
State Effective Date ZIP LOCAL County New Local Rate New Total Rate
WA 1/1/2021 98071 county-wide housing & related services King 1.5000 10.1000
WA 1/1/2021 98175 Seattle TBD expires 12/31/2020 (-0.1%) King 1.4000 10.1000
WA 1/1/2021 98033 Kirkland King 1.6000 10.2000
WA 1/1/2021 98045 North Bend King 0.4000 9.0000
WA 1/1/2021 99119 county-wide Mental Health Tax Pend Oreille 0.1000 7.7000
WA 1/1/2021 98944 Sunnyside TBD Yakima 0.2000 8.2000

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2020 Sales Tax Developments

Three months in and it’s already been a hectic year on many frontssales and use taxes have been no exception. Developments in 2020 so far include: 

 

Alaska –  While Alaska does not have a state level sales tax, certain local municipalities do.  The Municipal League has finalized the uniform Alaska Remote Seller Sales Tax Code, which establishes a framework for administering local sales taxes on remote commerce.  

 

Arizona revised its threshold for annual transaction privilege tax (TPT) electronic filing and paying. Effective Jan. 1, the threshold became $5,000, a change from the 2019 level of $10,000. Businesses with an annual TPT and use tax liability of $5,000 or more during the prior calendar year are now required to file and pay electronically starting in February for the January reporting period. 

Those failing to electronically file and pay are subject to penalties of 5% of the tax amount due for filing a paper return (minimum penalty: $25) and/or 5% of the amount of payment made by check or cash. 

 

Georgia will require marketplace facilitators to collect and remit sales tax on behalf of third-party sellers per a bill signed by the governor earlier this year. The measure takes effect April 1. 

 

Hawaii now requires certain taxpayers, including general excise taxpayers whose liability exceeds $4,000 for the taxable year, to file returns electronically. General excise taxpayers whose annual liability exceeds $4,000 are required to file periodic returns monthly; the new requirement kicks in for periodic general excise tax returns for months beginning on or after July 1. 

Annual returns for taxable years beginning on or after Jan. 1 will be required to be filed electronically. The state will levy a 2-percent penalty on the amount of tax required to be shown on the return if the return is not filed electronically unless the failure is due to “reasonable cause and not due to neglect.” 

Hawaii also began requiring marketplace facilitators to collect and remit the tax due on all sales, including those by third-party or marketplace sellers, effective Jan. 1. Economic nexus is $100,000 or more in gross income sourced to Hawaii or at least 200 transactions with parties in the state. 

 

Illinois began requiring certain marketplace facilitators to collect and remit the tax due on sales made through the platform in the state starting in January. A marketplace facilitator is considered the retailer of each sale of tangible personal property or taxable services made through the marketplace if: cumulative gross receipts from sales of tangible personal property or taxable services to purchasers in Illinois by the marketplace facilitator and its marketplace sellers are $100,000 or more or the marketplace facilitator and marketplace sellers cumulatively enter into 200 or more separate transactions for the sale of tangible personal property or taxable services into Illinois. 

If a remote marketplace establishes economic nexus by meeting one or both thresholds, it must collect and remit Illinois sales and use tax for one year. 

 

Louisiana’s Supreme Court has found Walmart free of obligation to collect and remit sales tax for its third-party sellers contrary to claims of authorities in the Parish of Jefferson. The case hinged on whether an online marketplace is obligated as a dealer under state regulations “and/or by contract to collect sales tax on the property sold by thirdparty retailers through the marketplace’s website. 

 

Michigan’s Marketplace Facilitator Law kicked in Jan. 1. Marketplace facilitators who make more than $100,000 in sales or at least 200 transactions in Michigan must collect sales tax on behalf of third-party sellers on their platform. Marketplaces that have adopted this law include Amazon, eBay, Etsy and Walmart. 

Michigan law defines marketplace facilitators as a “person that facilitates retail sales for third-party marketplace sellers by listing or advertising the seller’s product for sale on its marketplace, and either directly or indirectly (through agreements with third parties or the facilitator’s affiliates), collects payment from retail purchasers and transmits that payment to marketplace sellers for consideration.” 

 

North Carolina now mandates that marketplace facilitators are liable for the tax on third-party sales, starting Feb. 1. The nexus threshold is more than $100,000 in gross sales in North Carolina or at least 200 separate transactions in North Carolina. Marketplace facilitators meeting the above threshold are required to collect and remit tax on behalf of all marketplace sellers, regardless of whether the seller has a physical presence in North Carolina. 

 

Wisconsins Act 10 makes marketplace providers liable for sales tax and mandates that marketplace providers must inform third-party sellers that the marketplace is collecting and remitting sales tax on their behalf, effective Jan. 1 

 


 

Sales and use tax collection is constantly changing, we can help ensure you stay compliant. Especially in today’s uncertain enironment, sales tax updates and extensions are happening daily.  Keep up with the latest updates by reaching out. When you work with TaxConnex™, it’s all on us. 


 

Sales tax change frequency by state

Zip2Tax compares the sales tax change frequency of the states. Ever wonder how your state measures up?

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.
sales tax change frequency

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.

Fill in the sign up form below this blog to receive our monthly newsletter and get alerted when one of these states makes a sales or use tax change or other important tax-related information.

 

Four states greet November with sales tax changes

Four states greet November

Sales tax changes occurred in four states in Zip2Tax products since October 2015.

In Arizona, tax rates changed for Jerome, Sierra Vista and Mammoth.

In Tennessee, tax rates changed for Hardin County, Henry County and Dunlap.

In Wisconsin, tax rates changed for Brown County.

In Wyoming, tax rates changed for Converse County.

There were 28 states with ZIP code changes effective after October 2015 including Alabama, Arizona, California, Colorado, Connecticut, District of Columbia, Georgia, Illinois, Massachusetts, Maryland, Michigan, Minnesota, Missouri, North Carolina, Nebraska, New Jersey, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Washington, Wisconsin and West Virginia. A PDF document enumerating ZIP code additions and deletions can be made available upon request.

For October’s changes click here.

Angel Downs, Zip2Tax's ead tax researcher

Angel Downs, Zip2Tax’s lead tax researcher

Sales and use tax rate changes for May 2015

Sales tax rates – May 2015

Sales tax rates – May 2015

Sales and/or use tax rates have changed in Zip2Tax products in Alabama and South Carolina since March 2015.

In Alabama, tax rates changed for Five Points.

In South Carolina, tax rates changed for Colleton and Georgetown Counties.

There were 7 states with ZIP code changes effective after April 2015 including Georgia, Illinois, Kentucky, Maine, New York, Ohio, and Pennsylvania. A PDF document enumerating ZIP code additions and deletions can be made available upon request.

There were 7 states with ZIP code changes effective after April 2015 including Georgia, Illinois, Kentucky, Maine, New York, Ohio, and Pennsylvania. A PDF document enumerating ZIP code additions and deletions can be made available upon request.

There were 7 states with ZIP code changes effective after April 2015 including Georgia, Illinois, Kentucky, Maine, New York, Ohio, and Pennsylvania. A PDF document enumerating ZIP code additions and deletions can be made available upon request.

For April’s changes click here.

Sales tax rates - May 2015

Angel Downs, Lead Tax Researcher

 

 

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