Sales Tax Rates Down in Some States Reports Thomson Reuters

Sales tax rates decreased in more states, counties and cities and fewer new taxes were created in 2011 than in 2010, Thomson Reuters reports in its latest ONESOURCE Indirect Tax Rate Report.

“This is good news for taxpayers, although with more than 700 sales and use tax rate changes in the U.S. and more than 2,000 value-added tax changes globally it continues to be a challenge for businesses to keep up and stay compliant,” said Carla Yrjanson, vice president of tax research and content at Thomson Reuters. “Businesses are legally obligated to comply with the myriad of tax code changes implemented each quarter, and they need both sophisticated software applications and timely, accurate information.”

Thomson Reuters’ annual report provides a synopsis of the changes that occur in sales, use and value-added taxes and a high-level look at information contained in the Thomson Reuters ONESOURCE Indirect Tax Solutions. The 2011 report also found:

  • Indiana, Mississippi, New Jersey, Rhode Island and Tennessee had the highest state sales tax rate at 7.0 percent
  • 107 state, county and city sales taxes were lowered, up from 68 in 2010
  • 236 new sales taxes were imposed, a decrease from 305 in 2010
  • The average state sales tax was 5.48 percent in 2011, down from 5.55 percent in 2010
  • The average county sales tax was 1.15 percent in 2011, down from 1.23 percent in 2010
  • The average city sales tax was 1.67 percent in 2011, down from 1.72 percent in 2010