- The data from Vertex’s 2024 Mid-Year Sales Tax Rates and Rules Report shows that sales and use tax compliance complexity is increasing at the substate level, with city-level sales tax rate changes exploding during the first six months of the year.
- The fallout from these changes requires a deeper look at the underlying drivers of sales tax rates and rules changes, as well as several adjacent factors and trends that exacerbate the difficulty of keeping pace with indirect tax policymaking.
- The country’s 46 state tax jurisdictions are massively eclipsed by 7,008 city tax jurisdictions, 1,964 county tax jurisdictions, and 3,015 district tax jurisdictions, with 30 new taxing cities and 77 new tax districts materializing in the first half of the year. The proliferation of new sales taxes combined with ever-changing sale tax rates generates a level of granularity that makes sustaining end-to-end tax reporting and remittance challenging.
- Additionally, state and local jurisdictions are adopting environmental, airport, retail service delivery, and other fees at an accelerating pace, posing similar challenges and complexities to indirect tax teams.
Source Vertex
