Does your business have exposure to sales tax in multiple states? Here are some of the latest news stories to keep you informed.
A county sales tax hike took center stage at a Lorain County Commissioners meeting Wednesday morning in Elyria. In a move that continues to draw the ire of many residents, the commissioners approved a .25% sales tax increase earlier this year. The rate hike, which upped the county's sales tax from 6.50% to 6.75%, passed the commission this January after it failed at the polls in November 2016; going into effect this April. Residents have continuously protested and petitioned against the increase in the interim, including at today's meeting; though whether their efforts will result in a repeal remains to be seen.
Tyler, Texas is projecting a $867,572 shortfall in sales tax revenue over the remaining two months of the 2017 fiscal year. Currently 41% of the city's revenue comes from sales tax, forcing city officials to explore numerous remedies to cover the nearly $1 million discrepancy; including an increase in property taxes and cutting some city services. Experts point to an increase in online shopping and the closure of local brick and mortar stores as causes for the decline in sales tax revenue.
Still lacking a state budget over a month after the July 1 deadline, Connecticut law-makers are considering an increase in the state's sales tax. At 6.35% Connecticut's sales tax is already the 12th highest in the nation, and a budget plan backed by the state's Democratic lawmakers includes a further increase of .64%. Should the plan succeed Connecticut's sales tax would rise to 6.99%, tying it with several other states for 2nd highest in the country, below only California's 7.25%. The proposal also allows municipalities to enact their own 1% local sales tax raise for restaurant, bar, and fast-food purchases. Proponents of the tax hike point to estimates that it will raise a projected $420 million in fiscal year 2018, and $429 million in fiscal year 2019. In a state already facing a troubling budget shortfall, raising the sales tax is one of many proposed fixes to Connecticut's fiscal woes.
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