Tax Changes for November 2016

Sales November 2016

Sales November 2016

Sales and/or use tax rates have changed in Zip2Tax products since the October updates.

In Alabama, tax rates changed for the cities of Coffeeville and York.  

  • The Coffeeville official notice can be found here.
  • The York official notice can be found here.

In Arizona, tax rates changed for the City of Globe.

  • The Mayor and Council of the City of Globe passed Ordinance No. 834. which amended the City Tax Code to increase the tax rate on retail sales from two percent (2%) to two and three-tenths percent (2.3%).  More details here AZ DOR.

zip-codes-picture

 

There were 16 states with ZIP code changes…

……in Arizona, California, Connecticut, DC, Florida, Georgia, Indiana, Minnesota, North Carolina, Nebraska, New Mexico, New York, Oregon, Puerto Rico, Texas, and Wisconsin.

 

Until next month, best regards!

For October’s changes click here.

B.D. French, Researcher

B.D. French, Tax Researcher

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

Wisconsin legislators consider launching two sales tax holidays

Wisconsin legislators sales tax holidays

Wisconsin sales tax holidaysWisconsin legislators reviewed proposals this month for two possible sales tax holidays later in the year. During these holidays, Wisconsin shoppers would not have to pay sales taxes on certain purchases.

The first holiday would be the first weekend in August and cover some back-to-school items like clothes, school supplies and computers. The second holiday would be the first weekend in November and would cover energy efficient appliances like Energy Star qualified products.

This proposal was met with mixed reviews. Some lawmakers thought the holidays would be a good way to stimulate the economy while others thought these proposals were a bit too much of a gimmick and the government should focus on reducing the overall sales tax rate instead.

Read more at weau.com

Amazon now collecting sales taxes on majority of purchases

collecting sales taxes

collecting sales taxes

Amazon is now collecting sales taxesThis November, Amazon reached an important milestone for sales taxes. The majority of consumers that shop with the online retailer now need to pay sales taxes on their purchases. This is because 16 state governments, home to roughly 163 million Americans, have passed laws requiring Amazon to begin collecting sales taxes from residents even though the sales are online. Legislators in Massachusetts, Connecticut, and Wisconsin are the latest to pass these types of bills.

This adds momentum to the passing of the Marketplace Fairness Act. Since many state governments have already passed this type of online regulation, a national bill would create less of a change to the current environment.

Read more at the Wall Street Journal

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