Thomson Reuters Announces Sabrix Report on Changes to State and Local
Sales and Use Tax Codes
Sales and Use Tax Codes
NEW YORK, NY, Jul 26, 2010 (MARKETWIRE via COMTEX) --
The Tax & Accounting business of Thomson Reuters today announced the latest Sabrix report on changes to state and local sales and use tax codes. There were a total of 131 changes with 91.6 percent of them being increases or new taxes.
The Sabrix report correlates data from the U.S. Census Bureau, "Quarterly Summary of State and Local Government Tax Revenue," (http://ftp2.census.gov/govs/qtax/information_sheet.pdf) June 29, 2010 revealing that state sales tax revenue increased for the first time in six quarters, growing by 0.3 percent indicating continued reliance on sales and use tax to address government deficits.
Highlights of the Sabrix report include:
-- 80 increases, 40 new taxes and 11 decreases.
-- 2 state changes, 19 county changes, 83 city changes and 27 transit
changes.
-- The highest combined sales tax rate (state, county and city) of 11
percent was in Arab, AL and Bellwood, IL (inside districts), followed
by St. Louis, MO at 10.491 percent. The average combined rate was 8.3
percent in Q2 2010.
-- California had the highest state rate at 7.25 percent, followed by
Indiana, Mississippi, New Jersey, Rhode Island, Tennessee and South
Carolina at 7 percent compared to the average state sales tax rate of
5.49 percent in Q2 2010. Note that this only represents the state
designated portion of the sales tax, not the total combined state,
county and city rate.
-- Sitka, AK had the highest borough/county rate at 6 percent, followed
by Hinsdale, CO; Juneau, AK; Chambers, AL; Tuscaloosa, AL; Iberville
Parish, LA; Orleans Parish, LA; St. Bernard Parish, LA; and St.
Charles, LA at 5 percent compared to the average county sales tax rate
of 1.15 percent in Q2 2010. Note that this only represents the
borough/county designated portion of the sales tax, not the total
combined state, county and city rate.
-- Alaska is home to the top ten highest city rates with Wrangell, AK at
7 percent, followed by Bethel, AK; Buckland, AK; Cordova, AK;
Dillingham, AK; Hoonah, AK; Kodiak, AK; Kotzebue, AK; Petersburg, AK;
and Thorne Bay, AK at 6 percent compared to the average city sales tax
of 1.66 percent in Q2 2010. Note that this only represents the city
designated portion of the sales tax, not the total combined state,
county and city rate.
"Regardless of whether there is a tax increase, decrease or a new tax all together, each change represents a significant operational outlay for businesses that are burdened with implementing those changes in a timely fashion," said Carla Yrjanson, vice president, Sabrix Tax Services, part of the Tax & Accounting business of Thomson Reuters. "As government continues to rely on sales and use tax to address their budget shortfalls, the cost of compliance will keep rising, particularly for businesses that manage the process in-house."
To download the full report, go to: http://www.sabrix.com/documents/Q2_2010_Sabrix_Sales_Tax_Report.pdf.
About Thomson Reuters Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial, legal, tax and accounting, healthcare and science and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs more than 50,000 people and operates in over 100 countries. For more information, go to www.thomsonreuters.com.
The Tax & Accounting business of Thomson Reuters is the leading provider of technology and information solutions, as well as integrated tax compliance software and services to accounting, tax and corporate finance professionals in accounting firms, corporations, law firms and government. Headquartered in New York, Tax & Accounting has major operations in Dallas, Ann Arbor (Michigan), London, Sydney, and Toronto, and offices in nine countries. For more information, go to http://thomsonreuters.com/products_services/taxacct/.
Sabrix and Sabrix Managed Tax Service are trademarks of Thomson Reuters. All other company and product names are trademarks or registered trademarks of their respective holders.
CONTACT Aimee Quemuel (415) 753-9005 Email Contact
SOURCE: Thomson Reuters Sabrix
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