Wacky Sales Tax Facts
Did you know that most developers will tell you that Sales Tax can be determined by using zip code alone? They’re sorely mistaken as it takes more than just zip codes to determine accurate sales tax rates. My previous post illustrated that each jurisdiction can be determined by the local city or state officials depending on their own laws and needs.
In my search to understand this concept, I came across the smallest Sales Tax Jurisdiction in the United States.
As you can see, this jurisdiction covers only one building in the Hoisington City District and is sandwiched between the other jurisdictions. This building is the local Subway on Broadway and Highway 281. It includes a half percent more tax than the businesses around the area. That makes sales tax determination something that requires rooftop level accuracy. Not getting this right could mean that your business could be subjected to penalties and fines when you do not collect the right amount of tax.
This makes life considerably more difficult for small business owners who are selling goods nationwide and who are trying to roll their own sales tax capabilities.
More on this next month!
The 2021 sales tax changes report: midyear update
Your guide to navigating the complicated world of tax compliance and preparing for the future
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