July 1st Sales / Use Tax Rate Changes

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:

Alabama changes

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%.

Arkansas changes

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
California changes

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?

Colorado changes

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.

Georgia changes

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.

Iowa changes

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
  • Dexter
  • Granger
  • Linden
  • Minburn
  • Unincorporated areas of Dallas County
  • Van Meter
  • Waukee
  • Clive
  • Grimes
  • Urbandale
  • West Des Moines
Illinois changes

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.

Kansas changes

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.
Louisiana changes

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)
Missouri changes

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)
Oklahoma changes

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.

Texas changes

Hickory Creek in Denton County reduced the sales & use tax for the Municipal Street Maintenance and Repair (SMR) from 2.0% to 1.75%.

Vermont Changes

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.

  • Athens
  • Davis
  • Elizabeth
  • Elkins

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.

Contact UsCall, chat, or email Teresa today for more information about our sales and use tax products!  See our product comparison chart.

Direct E-mail: TeresaF@Zip2Tax.com
Direct Phone : 1-866-492-8494

 

New Year’s sales tax updates effective January 1, 2016

Sales tax updates: 19 states have sales and use tax rates which have changed in Zip2Tax products since December 2015. 

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.

For December 2015 changes click here.  To see what States are the most guilty of constantly changing their tax rates visit this article.

Angel Downs, Zip2Tax's ead tax researcher

Angel Downs, Zip2Tax’s lead tax researcher

Taxability matrix: Are pumpkins tax exempt?

Are pumpkins considered tax exempt food or non-exempt decorative items?

taxability matrix

If sales tax applies to jack-o’-lanterns, but not to edible pie pumpkins, what do you do in this case?

Pumpkins are one of those items where it isn’t clear whether the buyer is going to eat them or play with them. Only six states — Alabama, Idaho, Kansas, Mississippi, Oklahoma and South Dakota — do not exempt or at least reduce the sales tax rate on food and grocery items. This leaves pumpkin sellers with a conundrum. How is the determination to be made as to whether they are tax exempt food?

Back in 2007, Iowa briefly enacted and that same year repealed a law forcing retailers to attempt to determine whether the purchaser’s intended to eat or carve the bright orange squash. They were then supposed to charge sales tax on the carving jack-o’-lantern but exempt the sales tax for the delicious little soon-to-be treat.

The Iowa tax department sent a bulletin to retailers reminding them that where once all pumpkins were tax exempt food, now they were to be taxable if they were 1) advertised to be used as jack-o’-lanterns; and 2) they were understood to be jack-o’lanterns. How exactly one is supposed to “understand” the intended usage of a buyer and later prove that to the department of taxation is left to your imagination.

To complicate the matter even further, Iowa’s pumpkins could still be sales tax exempt if 1) the buyer presented a sales tax exemption certificate; 2) the pumpkin was of a pie variety and specifically advertised for that purpose, or 3) they were purchased using food stamps.

How are pumpkins treated in your state? Did you pay sales tax when you bought yours this year. Please comment and let us know your experience.

 

Exemption certificates need to be reviewed for validity

Exemption certificates

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.

Exemption Certificate Validity

StateAbbrev.Validity Period
AlabamaALTill Changed Or Revoked
AlaskaAKNA – No Certificates
ArizonaAZDate On Certificate
ArkansasARNA – No Certificates
CaliforniaCATill Changed Or Revoked
ColoradoCONo Expiration
ConnecticutCT3 Years
DelawareDENA – No Certificates
District Of ColumbiaDCTill Changed Or Revoked
>FloridaFL5 Years
GeorgiaGATill Changed Or Revoked
HawaiiHITill Changed Or Revoked
IdahoIDNo Expiration
IllinoisIL5 Years
IndianaINNo Expiration
IowaIA5 Years
KansasKSTill Changed Or Revoked
KentuckyKYTill Changed Or Revoked
LouisianaLA3 Years
MaineMETill Changed Or Revoked
MarylandMD5 Years
MassachusettsMANo Expiration
MichiganMI4 Years
MinnesotaMN3 Years
MississippiMSNA – No Certificates
MissouriMO5 Years
MontanaMTNA – No Certificates
NebraskaNENo Expiration
NevadaNV5 Years
New HampshireNHNA – No Certificates
New JerseyNJ5 Years
New MexicoNMNo Expiration
New YorkNYTill Changed Or Revoked
North CarolinaNCNo Expiration
North DakotaNDNo Expiration
OhioOHNo Expiration
OklahomaOK3 Years
OregonORNA – No Certificates
PennsylvaniaPA3 Years
Rhode IslandRINo Expiration
South CarolinaSCTill Changed Or Revoked
South DakotaSD1 Year
TennesseeTNTill Changed Or Revoked
TexasTXNo Expiration
UtahUT1 Year
VermontVTNo Expiration
VirginiaVATill Changed Or Revoked
WashingtonWA1 Year
West VirginiaWV1 Year
WisconsinWI5 Years
WyomingWYNo Expiration

Sales tax rates and use tax changes for July 2015

Sales tax rates – July 2015

Sales tax rates have changed in 20 states and Puerto Rico and there were 13 states with ZIP code changes in Zip2Tax products since June 2015. Sales and or use tax rates are changed in Alabama, Arkansas, Arizona, California, Colorado, Iowa, Illinois, Kansas, Louisiana, Minnesota, Missouri, New Mexico, Ohio, Oklahoma, South Dakota, Utah, Washington, and West Virginia.

In Alabama, tax rates changed for Cedar Bluff and Fairview.

In Arkansas, tax rates changed for El Dorado, Manila, Moorefield and Ouichita County.

In Arizona, tax rates changed for Graham County and the city of Marana.

In California, tax rates changed for the city of Weed.

In Colorado, tax rates changed for Georgetown.

In Georgia, tax rates changed for the counties of Muscogee and Whitfield.

In Iowa, tax rates changed for Lone Tree, Solon, Hills, Swisher and West Branch.

In Illinois, tax rates changed for Carbon Cliff, Carbondale, Coulterville, Crestwood, Deland, Elkville, Glenwood, Highwood, La Grange, Lyons, Montgomery, Morrison, Oglesby, Rantoul, Rock Falls, Toledo, Wadsworth, Westmont, and the counties of Calhoun, Greene, Jefferson, Jersey, Jo Davies, Knox, McDonough, Morgan, Perry, Piatt, Scott, White and Whiteside.

In Kansas, the state rate changed and there were tax rates changes for Clifton, Hutchinson, Lyndon, Marquette, and the counties of Gove, Morton, and Nemaha.

In Louisiana, tax rates changed for Winn Parish, Claiborne Parish, and Calcasieu Parish.

In Minnesota, tax rates changed for Hubbard County.

In Missouri, tax rates changed for Cape Girardeau, Hold County, Lawrence County, Buffalo, California, Concordia, Hannibal and Saint Joseph.

In New Mexico, tax rates changed for the counties of Bernalillo, Chaves, Dona Ana, Luna, Roosevelt, San Miguel, Santa Fe, Sierra, Torrance, Valencia, and the cities of Artesia, Sliver City, and Kirtland.

In Ohio, tax rates changed for the county of Richland.

In Oklahoma, tax rates changed for Barnsdall, Castle, Clinton, Colbert, Commerce, Foster, Rattan, Vici and the counties of Custer and Cotton.

In Puerto Rico, the possession tax rate changed.

In South Dakota, tax rates changed for Columbia and Westport.

In Texas, tax rates changed for Garrett, Sandy Oaks and Kendleton.

In Utah, tax rates changed for Farmington.

In Washington, tax rates changed for Sequim TBD and Dayton TBD.

In West Virginia, tax rates changed for Bolivar, Charles Town, Charleston, Martinsburg, Milton, Nitro, Parkersburg, Ranson, Thomas, Vienna and Wheeling.

There were 13 states with ZIP code changes effective after June 2015 including Alabama, Arizona, California, Florida, Iowa, Kansas, Kentucky, Montana, North Carolina, Ohio, South Carolina, South Dakota, and Utah. A PDF document enumerating ZIP code additions and deletions can be made available upon request.

For June’s changes click here.

Angel Downs, Zip2Tax's ead tax researcher

Angel Downs, Zip2Tax’s lead tax researcher

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