Voluminous 2016 Sales Tax Law Changes Burdens Businesses and Challenges Compliance

State legislatures were busy in 2016 making changes to sales and use taxes. There were 556 sales and use tax changes at the state, local and county level, based on the annual Sales Tax Rate Report per Vertex, Inc.

California lowered its rate from 6.5 to 6.25 percent; however, taxpayers saw no change in their total combined rate because various counties made tax rate changes. Puerto Rico has the highest state sales tax rate at 10.5 percent. Due to the repeal of Puerto Rico’s newly enacted Value Added Tax legislation, they returned to a sales and use tax system in 2016.

The varied and substantial number of tax changes made across multiple jurisdictions in different states each year creates a great burden on businesses. Changes to state and local tax laws create a challenge and are becoming increasingly more difficult for companies with a multistate reach to comply.

Compliance is a moving target, and each year it becomes more difficult for our clients, per Chanel Christoff Davis partner of Davis & Davis LLC – Sales Tax Experts. We put systems in place to improve our clients’ internal controls over sales tax and assist with monitoring state and local law changes.”

Davis & Davis specializes in serving the sales and use tax needs of companies in all industries, of all sizes, throughout Texas and all 50 states. We offer comprehensive services ranging from sales and use tax training, to our specialty of defending and protecting the interests of businesses during sales tax audits.

About Davis & Davis LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis & Davis LLC specializes in sales/use tax audit consulting and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals.