Thomson Reuters released the latest Onesource Indirect Tax report on changes to state and local sales and use tax codes for the first quarter of 2011. According to the report, 83.3 percent of the changes are increases and new taxes and most are at the city and county level. They are likely a response to cut-backs in federal and state funding.
The report also found:
• 98 increases, 37 new taxes and 27 decreases.
• 59 county changes, 81 city changes and 22 transit changes.
• California continues to have the highest state rate at 7.25 percent, followed by Indiana, Mississippi, New Jersey, Rhode Island and Tennessee at 7 percent, compared to the average state sales tax rate of 5.52 percent in first quarter, 2011. (This only represents the state designated portion of the sales tax, not the total combined state, county and city rate.)
• Sitka, Alaska, continues to have the highest county 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 first quarter, 2011. (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 percent, followed by Bethel, Buckland, Cordova, Dillingham, Hoonah, Kodiak, Kotzebue, Petersburg, Thorne Bay, and Tuba City, Ariz. at 6 percent, compared to the average city sales tax of 1.67 percent in first quarter, 2011. (This only represents the city designated portion of the sales tax, not the total combined state, county and city rate.)
• Tuba City, Ariz., has the highest combined sales tax rate (state, county and city) at 13.725 percent, followed by Kayenta, Ariz., at 13.735 percent; Fredonia, Ariz., at 11.735 percent; and Coconino County, Ariz., at 11.725 percent. The average combined rate was 8.34 percent in first quarter, 2011.
The full 2011 Q1 Onesource Indirect Tax Report can be accessed here.
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