Multinational companies needed to deal with 270 tax changes in the U.S. and globally in the second quarter of this year, according to a new report.

The latest ONESOURCE Indirect Tax Report from Thomson Reuters showed that there were a total of 184 changes in the U.S., 86 percent of which were either tax increases or new taxes. In addition, there were 86 changes internationally in value-added taxes. Thomson Reuters said that for the first and second quarters combined, there was a total of 2,073 changes.

The report found that general sales tax revenue turned out to be the second largest source of income for local government. Each tax change can represents a significant operational and cash flow outlay for businesses.

“When considering the impact that sales and use tax has on a business, financial executives should mainly be concerned with the number of changes in a given year,” said Carla Yrjanson, vice president of tax research and dontent for the Tax & Accounting business of Thomson Reuters. “For a business that runs its sales tax function completely in-house, just one sales tax change requires substantial operational resources.”

Internationally, the report found, there were 13 tax increases, one tax decrease, six new taxes and 64 product taxability changes.

In the U.S., there were 111 tax increases, 48 new taxes and 25 decreases. On the state level, there was one state change, 16 county changes, 90 city changes and 77 transit changes in the second quarter.

As of the second quarter of 2011, California continued to have the highest state tax rate at 7.25 percent. However, after a July 1 reduction to 6.25 percent, California no longer has the highest state tax rate. Indiana, Mississippi, New Jersey, Rhode Island and Tennessee are at 7 percent, compared to the average state sales tax rate of 5.52 percent in Q2 2011. However, this only represents the state-designated portion of the sales tax, not the total combined state, county and city rate.

Sitka, Alaska continued to have the highest county tax rate at 6 percent. Several boroughs/counties were tied for the second highest rates at 5 percent, 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 percent in second quarter, 2011. However, those figures only represent the borough or county-designated portion of the sales tax, not the total combined state, county and city rate.

Alaska has 10 of the 11 highest city rates in the country, with Wrangell at 7 percent, followed by Bethel, Buckland, Cordova, Dillingham, Hoonah, Kodiak, Kotzebue, Petersburg, and Thorne Bay at 6 percent compared to the average city sales tax of 1.67 percent in the second quarter of 2011. However, these figures only represent the city-designated portion of the sales tax, not the total combined state, county and city rate.

Several cities in Arizona also were found to have high combined tax rates. Tuba City, Ariz., has the highest combined sales tax rate (including state, county and city) at 13.725 percent, followed by Kayenta at 12.1 percent, Fredonia at 11.725 percent, and Coconino County at 11.725 percent. The average combined rate was 8.34 percent in second quarter, 2011.

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