Sales Tax Burden Increases for U.S. Consumers and Businesses in Q3 2013, According to New Report by Thomson Reuters

New York - 22 October 2013

According to the latest ONESOURCE Indirect Tax rate report from Thomson Reuters, U.S. indirect tax changes are on the rise. There were 208 U.S. tax code changes made in Q3 2013, up from 146 in Q3 2012. In addition, the total number of state, county, city and transit sales tax rate increases in the U.S. went from 69 in Q3 2012 to 129 in Q3 2013.

“The burden for U.S. taxpayers continues to increase, with both an increase in sales tax rates and in the number of tax law changes,” said Carla Yrjanson, vice president of tax research and content at Thomson Reuters. “New or increased tax rates have an obvious impact on the consumer, but the impact these changes have on businesses is often overlooked. Regardless of whether there is a tax increase, decrease, or a new tax all together, each change represents a significant operational burden for businesses that are chartered with collecting sales tax on behalf of government.”

In addition to the surge in overall tax changes, new unprecedented tax laws such as the Marketplace Fairness Act, the Medical Excise Tax and the Massachusetts Computer Software Sales Tax have either been enacted into law or proposed to be voted on within the past year.

The quarterly ONESOURCE Indirect Tax rate report summarizes changes in sales, use and value added taxes, providing a high-level look at information that is automatically incorporated monthly in detail in Thomson Reuters’ ONESOURCE Indirect Tax global software suite. Thomson Reuters’ in-house indirect tax research and content experts monitor changes in tax laws for over 175 countries. Additional highlights from the global Q3 2013 report released today include:

  • The number of value added tax rate increases globally declined from 20 to 3.
  • In the U.S., the average city, county and state tax rates increased compared to Q3 2012 as follows:
    • City rate increased from 1.68 percent to 1.75 percent
    • County rate went from 1.15 percent to 1.245 percent
    • State rate went from 5.48 percent to 5.615 percent
  • Italy deferred its 1 percent VAT increase from July 1, 2013 to Oct. 1, 2013.

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