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Vertex Report: U.S. Sees Continued Acceleration in Sales Tax Rates and Rules Changes
Globenewswireยท 2025-07-28 12:00
Core Insights - Vertex's 2025 Mid-Year U.S. Rates and Rules Report indicates a significant increase in sales tax rate changes, with 408 updates issued through June 30, 2025, representing a 24% rise compared to the first half of 2024 [1][2][3] Trends in Taxation - Local jurisdictions are primarily responsible for the majority of sales tax updates, with only one state raising its sales tax rate this year, suggesting potential future increases as local governments face budget pressures [2][4] - The rise of digital taxation is notable, with states like Maryland implementing a 3% sales tax on data and IT services, reflecting a legislative push to capture revenue from the digital economy [5] - E-invoicing compliance is becoming a global focus, particularly outside the U.S., where VAT remains a key revenue source, although domestic adoption is unlikely due to high compliance rates among U.S. taxpayers [6] Changes in Sales Tax Rates - Louisiana increased its sales tax rate from 4.55% to 5%, marking a nearly 10% increase, with only three other state sales tax rate changes since 2020 [6] - County rate changes rose significantly by 42%, from 36 in the first half of 2024 to 51 in the first half of 2025, while district rate changes increased by 23%, from 26 to 32 [6] - New taxing jurisdictions surged, with new taxing counties growing from 1 to 7, new taxing cities doubling from 30 to 60, and new district taxes spiking by 82%, from 77 to 140 [6] - City sales tax rate increases outpaced decreases at a ratio of approximately 6:1, indicating a trend towards higher local taxes despite an overall decline in the volume of city tax rate changes [6]