SOURCE: Thomson Reuters

Thomson Reuters

April 13, 2010 09:30 ET

Thomson Reuters Announces Q1 2010 Sales and Use Tax Report Findings

City and Counties Leverage Sales and Use Tax in Response to Federal and State Cut Backs

SAN RAMON, CA--(Marketwire - April 13, 2010) -  The Tax & Accounting business of Thomson Reuters today announced findings from its Q1 2010 sales and use tax update report. There were a total of 292 changes, mostly at the city and county level and a likely response to cut backs in federal and state funding. Highlights of the report include:

  • 1 state change, 52 county changes, 172 city changes and 67 transit changes.

  • California had the highest state rate at 7.25 percent, followed by Indiana, Mississippi, New Jersey, Rhode Island, Tennessee and South Carolina at 7 percent compared to the average state sales tax rate of 5.43 percent.

  • Sitka, AK had the highest borough/county rate at 6 percent, followed by Hinsdale, CO; Juneau, AK; Chambers, AL; Tuscaloosa, AL; Iberville Parish, LA; Orleans Parish, LA; St. Bernard Parish, LA; and St Charles, LA at 5 percent compared to the average county sales tax rate of 1.24 percent.

  • Alaska is home to the top ten 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; and Thorne Bay, AK at 6 percent compared to the average city sales tax of 1.72 percent.

  • The highest taxing authority with a combined sales tax rate of 12 percent was Arab, AL (Cullman County) compared to the average combined rate of 8.39 percent.

"With 292 changes in Q1 2010, businesses continue to be challenged with the growing complexity of managing the sales and use tax process," Carla Yrjanson, senior director, Sabrix Tax Services, part of the Tax & Accounting business of Thomson Reuters. "If the rest of the year follows the current trend, we are on track for a record breaking year in terms of sales and use tax changes, which will have a direct affect on the cost of compliance."

To download the full report, go to: http://www.sabrix.com/documents/Q1_2010_Sabrix_Sales_Tax_Report.pdf.

About Thomson Reuters

Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial, legal, tax and accounting, healthcare and science and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs more than 50,000 people and operates in over 100 countries. For more information, go to www.thomsonreuters.com.

The Tax & Accounting business of Thomson Reuters is the leading provider of technology and information solutions, as well as integrated tax compliance software and services to accounting, tax and corporate finance professionals in accounting firms, corporations, law firms and government. Headquartered in New York, Tax & Accounting has major operations in Dallas, Ann Arbor (Michigan), London, Sydney, and Toronto, and offices in nine countries. For more information, go to http://thomsonreuters.com/products_services/taxacct/.

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