Thomson Reuters Releases Indirect Tax Update Report with Q3 2011 Tax Changes
(Thomson Reuters ONE) -
Thomson Reuters Releases Indirect Tax Update Report with Q3 2011 Tax Changes
Global companies required to comply with 324 new tax changes in Q3 2011
NEW YORK, Oct. 20, 2011 - Thomson Reuters has released the latest ONESOURCE
Indirect Tax report which incorporates Q3 changes to VAT and sales and use tax.
In Q3 2011, there were a total of 202 changes in the U.S. Of those changes 96
percent were rate increases or new taxes. There have been a total of 548 U.S.
sales tax changes to date (Q1-Q3 2011). Internationally, there were 122 VAT
changes bringing the total changes through Q3 2011 to 2200.
As the second largest source of income for local governments, and with a myriad
of changes every quarter, VAT and/or sales tax is a legal obligation that
continues to become increasingly costly and complex for companies that are
burdened with implementing those changes in a timely fashion.
"For a business that runs its sales tax function completely in-house, a single
sales tax change requires substantial operational resources," said Carla
Yrjanson, vice president of Tax Research and Content for the Tax & Accounting
business of Thomson Reuters. "That means financial executives need to be mainly
concerned with the number of tax changes, regardless if they are increases,
changes or new taxes all together. To that end, the best defense is a good
offense in the form of repeatable best processes and software automation to
mitigate the rising costs of compliance regardless of what taxes governments
implement."
Highlights of the Q3 2011 report include:
* Internationally, there were 14 increases, 2 decreases, 4 new taxes, 4 end
dated rates and 98 product taxability changes.
* In the U.S., there were 97 increases, 96 new taxes and 9 decreases.
* There were 9 state changes, 29 county changes, 122 city changes and 42
transit changes.
* Highest state tax rate: as of July 1, California reduced its state rate to
6.25 percent and no longer has the highest state tax rate. Indiana,
Mississippi, New Jersey, Rhode Island and Tennessee are tied for the highest
rate at 7 percent compared to the average state sales tax rate of 5.48
percent in Q3 2011 (compared to the average 5.50 percent in Q2 2011). Note
that this only represents the state designated portion of the sales tax, not
the total combined state, county and city rate.
* Highest county rate: Sitka, AK continues to have the highest county rate at
6 percent. Several boroughs/counties were tied for the second highest rates
at 5 percent, including: Hinsdale, CO; Juneau, AK; Chambers, AL; Tuscaloosa,
AL; Iberville Parish, LA; Orleans Parish, LA; St. Bernard Parish, LA; and St
Charles, LA compared to the average county sales tax rate of 1.15 percent in
Q3 2011. Note that this only represents the borough/county designated
portion of the sales tax, not the total combined state, county and city
rate.
* Highest city rate: Alaska is home to 10 of the 11 highest city rates with
Wrangell, AK at 7 percent, followed by Bethel, AK; Buckland, AK; Cordova,
AK; Dillingham, AK; Hoonah, AK; Kodiak, AK; Kotzebue, AK; Petersburg, AK;
Thorne Bay, AK; and Tuba City, AZ at 6 percent compared to the average city
sales tax of 1.67 percent in Q3 2011. Note that this only represents the
city designated portion of the sales tax, not the total combined state,
county and city rate.
* Highest combined city, state and county rate: Tuba City, AZ (Navajo Nation)
has the highest combined sales tax rate (state, county and city) at 13.725
percent followed by Kayenta, AZ at 12.1 percent; Fredonia, AZ at 11.725
percent; and Coconino County, AZ at 11.725 percent. The average combined
rate was 8.3 percent in Q3 2011.
To download the full report, go to:
http://onesource.thomsonreuters.com/share/solutions/41686/61389/Q3-2011-SUT-and-
VAT-Report.pdf.
-End-
About Thomson Reuters
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businesses and professionals. We combine industry expertise with innovative
technology to deliver critical information to leading decision makers in the
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powered by the world's most trusted news organization. With headquarters in New
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employs more than 55,000 people and operates in over 100 countries. Thomson
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TRI). For more information, go to www.thomsonreuters.com.
CONTACT
Aimee Quemuel
(415) 753-9005
aimee(at)codeycommunications.com
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Datum: 20.10.2011 - 16:01 Uhr
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News-ID 78651
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