To improve is to change; to be perfect is to change often. – Winston Churchill
Following Churchill’s logic, sales tax rates, rules and regulations must be the very embodiment of perfection. Boy, do they change.
They change when states and local tax jurisdictions need more tax revenue. They change when there’s a revenue surplus. They change in response to pressure from lobbyists, public opinion, or technological innovations. Sometimes, it seems, they change with the tides or the seasons.
There have been a number of red-letter changes to date in 2016, most notably with respect to state sales tax rates, eliminating exemptions, and remote sales tax laws. More are sure to follow during the second half of the year. Federal legislators could decide to vote on a remote sales tax bill; Puerto Rico could resurrect the VAT; Arizona could (again) change the way it taxes fine art sold at auctions and galleries; Louisiana could decide to repeal the suspension of some exemptions; the governor of New York could sign the bill that permanently exempts feminine hygiene products from sales tax; other cities could follow Philadelphia’s lead and impose a tax on soft drinks; and West Virginia could broaden or increase sales tax. This being sales tax, any number of changes could crop up.
Be prepared
Whenever there is change, be it a rate increase, a new exemption, or an amended regulation, businesses need to be prepared to respond accordingly. A new report from Avalara covers everything you need to know about the big changes in effect for the second half of 2016, and provides insider tips to help you stay ahead of the state and federal changes that were just announced in July. It also sheds light on the proposed rules still in the works. Get your copy of the report here.