Four Sales Tax Trends for 2024: Implications for Indirect Tax Compliance

• 2023 had the highest volume of annual sales tax rate changes in the past 10 years
• There were 676 rate changes and new sales taxes in 2023
• The number of rate changes and new taxes in 2023 is second only to 2017
• Four developments are expected to have significant implications on indirect tax compliance in 2024:
• A trend of increasing district taxes and decreasing state sales tax rates
• State and local budgets may deteriorate despite current good conditions
• Sales tax on services expansion is unlikely, but taxes on digital goods and services and new fees are expected
• More state and local jurisdictions may need to increase sales tax rates and extend sales taxes to new areas

Source: vertexinc.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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