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The Impact of Ever-Changing Sales Tax Rates on Compliance and Business Operations

  • Sales tax compliance depends on many factors, including tax rates.
  • Tax rates for sales tax change frequently, including exemptions and special rules.
  • Examples of recent rate changes include California expanding its sales tax exemption for trucks and trailers, and Colorado enacting a use tax exemption for construction materials for public schools.
  • Exemptions can seem arbitrary, such as New York charging different sales tax on a toasted bagel with cream cheese.
  • Reasons for rate changes include political tax breaks, new products, and altering existing rates.
  • Rate changes can go against usual trends, such as Alabama reducing its state sales tax rate on food and South Dakota reducing its state sales tax rate.
  • It is recommended to review sales tax rates every six months for compliance.


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.


VAT news
VAT news