If you and your Finance team had the sinking suspicion you had to deal with more than the usual amount of sales tax rate changes last year, your suspicions are absolutely correct.
There were 721 sales tax rate changes in 2017, according to Vertex Inc.’s annual year-end tax rate study. That’s a 29% jump over the 558 shifts that happened in 2016.
Where to watch most closely
While you had just two new state sales tax rates to keep track of, a surge in new district taxes likely kept you and your team on your toes.
Two hundred thirty six district rate changes came your way, 94 of which came from newly-created districts. (California alone created 50 of them!)
What’s behind that? It’s a way for jurisdictions to create new revenue generating opportunities.
To keep your compliance high, have both your A/R and A/P staffers keep a closer eye on the district level.
Info: For more on the report, go to vertexinc.com/news/new-sales-tax-report-shows-significant-increase-rate-changes-2017
