The beginning of a new year means reviewing the prior year’s important developments as a means of predicting what lies ahead.
In 2013, a handful of states passed legislation mid-year to either increase or decrease statewide sales and use tax rates. But an analysis of the changes yields few discernible patterns. For each state, the new rate took effect in the second half of the year.
That’s where the similarities appear to end. There was almost an even split between the states that raised and lowered their rates. It also seemed to make little difference whether the state was controlled by the Democratic or Republican party. The District of Columbia, a historically “blue” jurisdiction, lowered its sales tax. Meanwhile, Ohio, in which Republicans control the Legislature and the Governor’s Office, raised its rate.
Below is a quick recap:
The following states lowered their sales and use tax rates mid-2013:
· Arizona- effective June 1, 2013, the rates decreased from 6.5 to 5.6 percent after a temporary 1 percent rate increase terminated;
· District of Columbia- effective Oct. 1, 2013, the rates decreased from 6 to 5.7 percent; and
· Kansas- effective July 1, 2013, the rates decreased from 6.3 to 6.15 percent.
The following states raised their sales and use tax rates mid-2013:
· Arkansas- effective July 1, 2013, the gross receipts and compensating tax rates increased from 6 to 6.5 percent;
· Maine- effective Oct. 1, 2013, the rates increased from 5 to 5.5 percent;
· Ohio- effective Sept. 1, 2013, the rates increased from 5.5 to 5.75 percent; and
· Virginia- effective July 1, 2013, the rates increased from 4 to 4.3 percent.
Continue the discussion on Bloomberg BNA’s State Tax LinkedIn Group . Do you believe the tax rate changes in 2013 provide any hints as to what may happen this year?
By Ean Hamilton
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)