As a business owner, you are already familiar with the seemingly ever-changing tax laws. Federal, state, and local tax changes are difficult to follow. If you engage in interstate commerce, keeping up with the changes in each location is nearly impossible. To help update you, here is a short list of sales tax news from around the country.
Sales Tax Increase to Help Pay for Roads
Situated in the eastern half of Atlanta, DeKalb County commissioners want to fund infrastructure improvements with a sales tax increase from 7 to 8 percent. A similar measure attempted one year ago did not pass, but commissioners believe that they will get the measure to the voters this November for a referendum. If passed, the anticipated revenue from the tax increase is $100 million per year. The bulk of the money will be allocated for road improvements.
Sales Tax Holiday in Ohio
The end of summer is usually the time of the year for tax-free shopping. Shoppers in Ohio have a sales tax break on school supplies and certain clothing items that runs from 12:01 a.m. on Friday, August 4 through 11:59 p.m. on Sunday, August 6. Based on sales data from the Cincinnati Economics Center, shoppers saved about $40 on average last year.
Decline in Sales Tax Revenue
State and local governments in Texas are receiving less money from sales taxes due to an increase in online shopping. Many states have seen similar drops in sales tax collections. To stop the reduction in revenue, many states are redefining physical presence so that they are able to levy sales taxes including new economic nexus standards, click-through nexus, and other reporting requirements. Revenues from sales tax will probably continue to drop unless the states makes other changes.
These stories are just a few examples sales tax fluidity. Keep checking back for more tax news, as we continue to keep you informed.