Business
Vertex 2024 Mid-Year Sales Tax Rates and Rules Report Reveals Local Governments are Increasingly Dependent on Sales Tax Revenues
The 2024 Mid-Year Sales Tax Rates and Rules Report alerts indirect tax teams on the substantial number of tax rate changes through June 30. KING OF PRUSSIA,
About this update from Vertex, Inc.
[{"type":"text","content":"The 2024 Mid-Year Sales Tax Rates and Rules Report alerts indirect tax teams on the substantial number of tax rate changes through June 30.\nKING OF PRUSSIA, Pa., July 25, 2024 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ:VERX) (“Vertex” or the “Company”), a global provider of tax technology solutions, today released its latest findings from their Mid-Year Rates and Rules Report. The findings reveal increases in both local and new tax rates as cities across the country respond to economic pressures, highlighting an urgent need for revenue at the municipal level. The 2024 Mid-Year Sales Tax Rates and Rules report outlines the evolving landscape of local tax implementation, proliferation of fees, and increasing complexity of tax compliance for businesses across the U.S. This is reflected by a 67% year-over-year increase in city-level sales tax rate changes. \"The landscape of sales tax and indirect taxation continues to change rapidly, both domestically and globally,\" said Michael Bernard, Vertex Chief Tax Officer. \"The ongoing trend of cities and districts leveraging sales taxes and fees remains consistent, following a decade-long trend. This coupled with the proliferation of specialized fees and the global focus on digital VAT initiatives, underscores the increasing intricacies of tax compliance for businesses. It's crucial for organizations to stay informed and agile, leveraging advanced tax technologies to manage these multifaceted challenges confidently and effectively.\" Key findings from the Vertex 2024 Mid-Year Sales Tax Rates and Rules report include: City-level spikes: The first half of 2024 witnessed an unprecedented spike in city-level sales tax rate adjustments. While city jurisdictions enacted 95 rate changes in the first six months of 2023, the same period in 2024 saw a dramatic increase to 159 authorized sales tax rate changes – a striking 67% year-over-year increase. This significant acceleration in local tax rate modifications reflects cities' proactive approach to revenue management in response to evolving economic conditions and budgetary pressures.Net-new taxation: The adoption of new taxing cities (30) and district taxes (77) in the first half of 2024 remains high, as establishing new taxing cities and districts is a simpler and faster process than altering state sales tax rates. This decade-long trend of net-n...