Guide to State Sales Tax Changes in the New Year (January 2014)

Why create a guide to state sales tax changes happening in the 2014 New Year? Here’s a hint: 52% of accounting professionals surveyed said that completing a marathon would be easier to accomplish than completely understanding sales tax laws for their company.*

One significant reason for this is that each state sets (and changes) its own sales tax rates and rules. That means that companies selling into multiple states have to keep up with a myriad of shifting sales tax policies in order to stay compliant; and state websites aren’t the easiest places to find tax information.

To help save you time and avoid soul-sucking tedium, we’ve put together a list of significant sales tax-related changes that are taking place on or around January 1, 2014. The list includes changes from over 25 states and covers new sales tax rate changes, sales tax exemptions, sales tax filing rules, and Amazon Taxes. 

Starting January 1, 2014, prepaid wireless telecommunications retailers will be liable for remitting E911 excise tax on prepaid wireless telecommunications services.

Buckeye, Arizona: transaction privilege tax will be 1.10% on purchases of more than $1,999.99 starting in 2014. This is a decrease from the 1.50% rate.

The Sedona Arizona transient lodging tax will increase from 3% to 3.5% on January 1, 2014.

Download free Arizona sales tax rate table.

Several Arkansas sales and use tax rates will change on January 1, 2014.

Beginning January 1, 2014, Arkansas will provide an exemption from state and local sales taxes for farm utilities.

Download free Arkansas sales tax rate table.

California will enact a partial sales tax exemption for manufacturers, July 1, 2014.

Download free California sales tax rate table.

Several Colorado sales and use tax rates will change on January 1, 2014.

Download free Colorado sales tax rate table.

Connecticut has announced changes to sales tax filing requirements, effective January 1, 2014.

Download free Connecticut sales tax rate table.

Effective January 1, 2014, several Florida communications services tax rates will change.

Highlands County, Florida, will begin administering and collecting its 2% tourist development tax (TDT), effective January 1, 2014.

Download free Florida sales tax rate table.

Several Georgia sales and use tax rates will change on January 1, 2014.

Download free Georgia sales tax rate table.

Several Illinois sales and use tax rates will change on January 1, 2014.

Effective January 1, 2014, numerous municipalities in Illinois will either simplify their municipal telecommunications tax or change their rate.

Download free Illinois sales tax rate table.

Amazon will begin collecting Indiana sales tax in January of 2014. 

Several Indiana sales and use tax rates will change on January 1, 2014.

Download free Indiana sales tax rate table.

Several Kansas sales and use tax rates will change on January 1, 2014.

Download free Kansas sales tax rate table.

Several Minnesota sales and use tax rates will change on January 1, 2014.

Minnesota will extend sales tax exemptions of certain items and services to cities and counties beginning Januray 1, 2014.

Download free Minnesota sales tax rate table.

Several New Mexico sales and use tax rates (gross receipts) will change on January 1, 2014.

Download free New Mexico sales tax rate table.

Amazon will begin collecting sales tax in Nevada on January 1, 2014.

Download free Nevada sales tax rate table.

Effective January 1, 2014, an exemption for prepared food sold to college students in institutions of higher education will be repealed.

Download free North Carolina sales tax rate table.

Several North Dakota sales and use tax rates will change on January 1, 2014.

Retailers in North Dakota will have to file all sales and use tax returns electronically, effective for reporting periods beginning after December 31, 2013.

Download free North Dakota sales tax rate table.

New York’s sales tax exemption for natural gas will expire August 31, 2014.

Download free New York sales tax rate table.

Several Ohio sales and use tax rates will change on January 1, 2014.

Download free Ohio sales tax rate table.

Several Oklahoma sales and use tax rates will change on January 1, 2014 (source 1, source 2).

Download free Oklahoma sales tax rate table.

Rhode Island enacted a sales tax exemption for art on December 1, 2013.

Rhode Island also enacted a sales tax exemption for wine and spirits that will last from December 1, 2013 until April 1, 2015.

Download free Rhode Island sales tax rate table.

Several South Dakota sales and use tax rates will change on January 1, 2014.

Download free South Dakota sales tax rate table.

Amazon will begin collecting sales tax in Tennessee on January 1, 2014.

Download free Tennesee sales tax rate table.

Several Texas sales and use tax rates will change on January 1, 2014.

Texas enacted a sales tax exemption related to data centers on September 1, 2013.

Download free Texas sales tax rate table.

Several Utah sales and use tax rates will change on January 1, 2014.

Download free Utah sales tax rate table.

Several Washington sales and use tax rates will change on January 1, 2014 (source 1, source 2).

Download free Washington sales tax rate table.

Effective January 1, 2014, Winsconsin will enact new thresholds for sales and use tax filing.

Download free Wisconsin sales tax rate table.

*2013 survey of 400 accounting professionals by Wakefield Research

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photo credit: 401(K) 2013 via photopin cc