Tax & Accounting Blog

June Sales and Use Tax Rate Changes

Indirect Tax, Transaction Tax May 27, 2010

The end of the 2nd quarter had very few changes effective in June but one big change was that of the Arizona state sales and use tax and rental rates increasing by 1% bringing these rates to 6.6%.  This is the first State standard sales and use tax rate change in 2010.  The Arizona Department of Revenue’s website indicates that Proposition 100 has passed by all appearances, with approximately 64 percent of voters in favor. Proposition 100 will temporarily increase the State Transaction Privilege and Use Tax by one percent effective June 1st. 

Alabama had some rate changes as usual, all were increases to the sales and use tax rates.  Below are the Alabama changes effective June 1st.

                Irondale Police Jurisdiction – 2.0% sales and use tax
                Ashville – 3.0% sales and use tax
                Ashville Police Jurisdiction – 1.5% sales and use tax
                Baldwin County – 3.0% sales and use tax
                Mobile – 5.0% rental and sales and use tax
                Mobile Police Jurisdiction – 2.5%
Along with the Arizona state rates changing was the Dewey-Humboldt rate increasing for Rental and Food for Home Consumption to 2.0%.

The city of White Plains, NY increased their sales and use tax rate to 2.5% effective June 1st. 

On June 12th, the city of Wrangell, Alaska will grant sellers the opportunity to participate in a Sales Tax Holiday. The Sales Tax Holiday will exempt purchases of all tangible personal property and services, excluding rentals.

The trend we see is that jurisdictions are increasing their rates rather than decreasing their rates and we’ll most likely see that trend continue as we near the beginning of a new quarter with many rate changes expected in July.  Stay tuned for our July rate changes update.