SOURCE: Thomson Reuters Corporation

Thomson Reuters Corporation

October 21, 2010 10:00 ET

Thomson Reuters Announces Sabrix Sales and Use Tax Update Report

Nearly 95 Percent of Tax Changes Were Increases or New Taxes Correlating Data From U.S. Census Bureau

NEW YORK, NY--(Marketwire - October 21, 2010) - The Tax & Accounting business of Thomson Reuters (NYSE: TRI) today announced the latest Sabrix report on changes to state and local sales and use tax codes. There were a total of 194 changes with 94.8 percent of them being increases or new taxes.

The Sabrix report correlates data from the U.S. Census Bureau, "Quarterly Summary of State and Local Government Tax Revenue," September 27, 2010 revealing that state and local sales tax revenue increased by 5 percent rising to $60.7 billion from $57.9 billion in 2009 indicating continued reliance on sales and use tax to address government deficits.

Highlights of the Sabrix report include:

  • 103 increases, 81 new taxes and 10 decreases.
  • 3 state changes, 31 county changes, 125 city changes and 35 transit changes.
  • California continues to have the highest state rate at 7.25 percent, followed by Indiana, Mississippi, New Jersey, Rhode Island and Tennessee at 7 percent compared to the average state sales tax rate of 5.55 percent in Q3 2010. Note that this only represents the state designated portion of the sales tax, not the total combined state, county and city rate.
  • 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 1.15 percent in Q3 2010. Note that this only represents the borough/county designated portion of the sales tax, not the total combined state, county and city rate.
  • 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 1.66 percent in Q3 2010. Note that this only represents the city designated portion of the sales tax, not the total combined state, county and city rate.

"For the third quarter in a row, sales tax revenue has increased as the government continues to rely on taxes to address their budget shortfalls," said Carla Yrjanson, vice president of Tax Research and Content. "With 194 changes in Q3 2010 alone, more stringent enforcement and increasing audits, the complexity and cost of compliance is expected to increase as businesses are obligated to implement those changes in a timely fashion." 

To download the full report, go to: http://www.sabrix.com/documents/Q3_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 Ann Arbor, Dallas, Hyderabad, London, Sydney, and Toronto. For more information, go to http://thomsonreuters.com/products_services/taxacct/.

Sabrix and Sabrix Managed Tax Service are trademarks of Thomson Reuters. All other company and product names are trademarks or registered trademarks of their respective holders.

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