Financial advisors might want to start reviewing tax strategies for clients: Across the U.S., there were 97 increases in state sales and use taxes, 96 new taxes and nine decreases in the third quarter of the year, according to a new report.
Thomson Reuters’ latest ONESOURCE Indirect Tax report found that in Q3 2011, there were a total of 202 changes in the U.S. Of those changes, 96% were rate increases or new taxes. There have been a total of 548 U.S. sales tax changes so far this year.
Indiana, Mississippi, New Jersey, Rhode Island and Tennessee tied for the highest state sales tax rate, at 7%, compared to the average state sales tax rate of 5.48% in Q3 2011 (compared to the average 5.50% in Q2 2011). However, this only represents the state-designated portion of the sales tax, not the total combined state, county and city rate. California used to have the highest state sales taxes, but it lowered its sales tax rate as of July 1.
Sitka, Alaska, continues to have the highest county rate at 6%. Several boroughs/counties were tied for the second highest rates at 5%, including: Hinsdale, Colo.; Juneau, Alaska; Chambers, Ala.; Tuscaloosa, Ala.; Iberville Parish, La.; Orleans Parish, La; St. Bernard Parish, La.; and St Charles, La., compared to the average county sales tax rate of 1.15% in Q3 2011. However, 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 10 of the 11 highest city rates with Wrangell at 7%, followed by Bethel, Buckland, Cordova, Dillingham, Hoonah, Kodiak, Kotzebue, Petersburg, Thorne Bay, and Tuba City at 6 percent compared to the average city sales tax of 1.67% in Q3 2011. This only represents the city-designated portion of the sales tax, not the total combined state, county and city rate.
The highest combined city, state and county rate was in Tuba City, Ariz., (part of the Navajo Nation), at 13.725%, followed by Kayenta, Ariz., at 12.1%; Fredonia, Ariz., at 11.725%; and Coconino County, Ariz., at 11.725%. The average combined rate was 8.3% in the third quarter.
Internationally, there were 122 changes in value-added taxes and sales and use taxes, bringing the total number of changes globally through the third quarter of the year to 2,200.
--This article first appeared on Accounting Today