State Sales Tax News August 2022
Minnesota: Fact Sheets on Local Sales Taxes Revised — June 2, 2022
The state of Minnesota revised its fact sheets with regards to local sales and use taxes and special local taxes. The altered fact sheets reflect the following changes:
- Effective June 30, 2022, Lake of Woods county's 3% lodging tax no longer includes lodging establishments situated within the Baudette city limits;
- Starting July 1, 2022, Norman county imposed a 0.5% transit sales and use tax and St. Peter imposed a 0.5% sales and use tax.
Colorado: Retail Delivery Fee Announced — June 2, 2022
Effective January 1, 2022, cigarette sales and excise tax rates for Minnesota have been set as follows:
- Sales tax: 3.315 cents per cigarette. (66.3 cents per 20-pack and $6.63 per carton)
- Excise Tax: 15.2 cents per cigarette. ($3.04 per 20-pack and $30.40 per carton)
Louisiana: Sales Tax Exemption For Feminine Products and Diapers — June 3, 2022
Effective July 1, 2022, feminine hygiene products and diapers for individual usage are exempt from state sales tax in Louisiana. Dealers are required to report the exempt sales of diapers and feminine products on LDR form R-1029, Schedule A-1 using code 5020.
Colorado: Transition to Destination Sourcing — June 2, 2022
Effective October 1, 2022, all small businesses operating in Colorado with retail sales of $100,000 or less are required to use destination sourcing to calculate their sales tax rates. Destination sourcing is the process in which the sales tax is determined based not on the seller’s business address but where the taxable product or service is being delivered. Businesses with sales of over $100,000 are already using destination sourcing and starting October 1, 2022, small businesses also need to abide by the destination sourcing rules.
Tennessee: Sales Tax Exemption On Food And Food Ingredients — June 2, 2022
Beginning August 1, 2022, through August 31, 2022, the state of Tennessee observes a tax free period on the purchase of food and food ingredients. Food and food ingredients brought from a vending machine or micro market remain subject to state sales tax.
Missouri: Local Sales and Use Tax Rate changes Announced — June 7, 2022
Effective July 1, 2022, through September 30, 2022, Missouri Department of revenue announced various local sales and use tax rate changes applicable to different counties, cities and special districts in Missouri.
Iowa: Local Option Sales Tax Changes Announced — June 15, 2022
Starting July 1, 2022, Iowa announced local option sales tax (LOST) date changes as follows:
- In Humboldt County, the cities of LuVerne and Rutland have extended the sunset dates to 6/30/31;
- In Des Moines County, the city of Burlington has extended the sunset date to 12/31/32;
- In Floyd County, Charles City and Unincorporated have extended the sunset dates to 12/31/32;
- In Howard County, Unincorporated susnset date has been removed and the LOST is effective in perpetuity; and
- In Appanoose County, the city of Moulton has removed LOST, which sunsets 6/30/22, and no extension voted in.
Florida: Sales Tax Rates Reduced On Retail Sale of New Homes — June 3, 2022
From July 1, 2022, the sales and use tax rates imposed by the state of Florida on retail sale of new mobile home reduced from 6% to 3%. Any other local option sales tax rates continue to be applicable.
Texas: Local Sales and Use Tax Rate Changes Announced — June 23, 2022
Texas announced the following local sales and use tax rate changes effective July 1, 2022:
- Skellytown (Carson County): An increase in the city sales and use tax rate to 8.25%;
- Marion County Assistance District: This special purpose district imposed a local sales and use tax of 1.5%;
- Prairie View/WH ESD 200: The following combined area is created to administer the local sales and use tax between overlapping local jurisdictions at a rate of 1.75%.
Tennessee: Sales Tax Holiday On Gun Safes and Gun Safety Devices Extended — June 6, 2022
Tennessee Department of Revenue passed a legislation extending the gun safe and gun safety devices sales and use tax exemption by an additional year. The holiday began on July 1, 2021 and was originally scheduled to end on June 30, 2022, which now ends on June 30, 2023.
New Jersey: Back to School Sales Tax Holiday — June 24, 2022
New Jersey offers a back-to-school sales tax holiday for the period beginning August 27, 2022 through September 5, 2022. During the exemption period following items when sold to individual purchaser for non-businesses purposes are sales tax free:
- Computers: less than $3,000 per item;
- School computer supplies: less than $1,000 per item;
- School supplies;
- School art supplies and instructional materials;
- Recreational or sport equipment.
Massachusetts: Sales Tax Holiday — June 16, 2022
Massachusetts announced their annual back to school sales tax holiday will take place on 13th and 14th August, 2022. During the tax exemption period retail items of up to $2,500 purchased for personal usage will be sales tax free.
Texas: 2023 Sales Tax holiday Dates Announced — June 28, 2022
Texas announced the dates for the 2023 Energy Star sales tax holiday to take place from May 27 to May 29, 2023.
Emergency preparation supplies sales tax holiday will be effective April 22 to April 24, 2023 in the state of Texas. During this period there is no restriction on the number of qualifying items one can purchase.
Virginia: Reduced Sales Tax Rate on Food And Personal Hygiene Items — June 29, 2022
Starting January 1, 2023, the sales tax on food purchased for human consumption and personal hygiene products will decrease to 1% statewide.