Changes in US Sales and Use Tax Rates: October 2024 Updates for Key States

The complex situation of determining US state, county, municipal, and district sales and use taxes is well known. Keeping up to date with all the changes may be even more challenging, which is why we bring some of the most noticeable changes taking effect in October 2024 in several US States.

Where Did the Sales and Use Taxes Rate Change?

Alaska is one of the US states that has yet to define a state-wide sales tax. Still, many cities or municipalities, except the City of Gambell, adopted and implemented the remote sales tax rules under the Uniform Code. Contrary to the City of Gambell, Mekoryuk introduced a 4% general retail sales tax, effective October 1, 2024.

It is vital to remember that all remote sellers operating in Alaska can utilize a single registration provided by the Alaska Remote Seller Sales Tax Commission to file sales tax returns with all member jurisdictions that have adopted the Code.

From Alaska, we move on to California, where a newly established city, the City of Mountain House in San Joaquin County, announced the introduction of a 7.75% sales and use tax starting October 1.

Also, some cities in Texas, such as Gary Pine Island and Waller-Harris, announced that they adopted the city sales and use tax. In addition, several other Texas cities imposed or increased additional city sales and use taxes. It is also noticeable that the city of Melissa in Collin County, Texas, decided to abolish the additional city sales and use tax for transactions related to industrial and economic development.

Conclusion

These are just some of the changes that took effect recently. In addition, some cities and municipalities in Arizona, Georgia, Kansas, Louisiana, Missouri, North Dakota, and Oklahoma also made changes and adjustments to their sales and use taxes.

Remote sellers who operate in these states should further examine whether these changes affect their business operations and whether applying new sales and use tax rates is needed.

Source: Alaska Remote Seller Sales Tax Commission, California Department of Tax and Fee Administration, Texas Controller Office