Vertex Report Shows Decrease in Sales Tax Rate Changes in 2014 — Adjustments up for First Two Quarters of 2015

The real news in tax rate changes this year originate from Puerto Rico

BERWYN, Pa.--()--According to the yearly sales tax rate study issued today by Vertex Inc., the leading provider of corporate tax solutions, the number of sales and use tax rate changes in the U.S. for year 2014 was 491, down from 2013 when there were 609 changes. State sales tax rates remained unchanged in 2014, and for the first half of 2015. However, there were 207 sales and use tax rate changes in just the first two quarters of 2015, up from 159 in the first six months of 2014.

“While the numbers for the first half of this year are actually higher than in 2014, the most remarkable pieces of news on the tax rate front so far this year come from Puerto Rico,” said John Minassian, Vice President of Tax Content Development for Vertex Inc. “Puerto Rico passed a sales tax increase to 11.5 percent from 7 percent including a local one percent rate that is consistent across the commonwealth and went into effect on July 1. The U.S. territory also passed a 4 percent tax on professional services which are currently exempt — this new tax will take effect on October 1, 2015. However, the biggest news is that Puerto Rico will transition to a value-added tax (VAT) effective April 1, 2016. This represents the first VAT to date in any U.S. territory or possession."

Noteworthy statistics from the Vertex 2014 Sales Tax Rate Report include:

  • Indiana, Mississippi, New Jersey, Rhode Island and Tennessee have the highest state sales tax rates at 7.000%. Minnesota has the second highest state rate at 6.8750%.
  • Kodiak, Alaska and Wrangell, Alaska have the highest city sales tax rate at 7.0000%. Hoonah, AK and Selawik, AK have the second highest rate of 6.5000%.
  • Tuba City (including the surrounding areas that are in the To’Nanees’Dizi Local Government), Coconino County, AZ has the highest combined sales tax rate of 12.600%.
  • Since 2005, there have been 2152 new sales and use taxes, an average 215 per year. (These numbers include January 1, 2005-December 31, 2014.)
  • Since 2005, there have been 4182 sales and use tax changes, an average of 418 per year. (These numbers include January 1, 2005-December 31, 2014.)
  • The combined number of new and changed sales and use tax rates since 2005 is 6334, an average of 633 per year. (These numbers include January 1, 2005-December 31, 2014.)

About Vertex

Founded in 1978, Vertex Inc. is the leading provider of corporate tax software and services for companies of all sizes, from small to medium-sized businesses to global multinationals.

Vertex solutions enable companies to realize the full strategic potential of the corporate tax function. The company offers a variety of products and services that allow businesses to automate, integrate, and streamline their corporate tax processes. Vertex provides solutions in every major line of tax including income, sales and consumer use, value added and payroll. Vertex also offers tailored solutions for specific industries including retail, communications, hospitality and leasing. Vertex Managed Services allows companies to outsource sales and use tax returns and exemption certificate management.

Known for its innovative culture, Vertex is a privately held company that employs over 900 professionals across the globe, at its headquarters in the U.S. (Berwyn, Pa.) and offices in Europe (London), Brazil (São Paulo), Dallas, Fort Collins, Naperville, Phoenix, San Francisco, Sarasota and Seattle.

For more information about Vertex, visit www.vertexinc.com.

Contacts

Company:
Vertex Inc.
Tricia Schafer-Petrecz, 484-595-6142
tricia.schafer-petrecz@vertexinc.com
or
Agency:
Bravo Group
Noelle Lorine, 610-263-8300
lorine@thebravogroup.com

Contacts

Company:
Vertex Inc.
Tricia Schafer-Petrecz, 484-595-6142
tricia.schafer-petrecz@vertexinc.com
or
Agency:
Bravo Group
Noelle Lorine, 610-263-8300
lorine@thebravogroup.com