April 2022 sales tax rate changes
April may be known as the month for income taxes, but state sales taxes also tend to see some big changes at the start of the month. Local sales and use tax rate changes will take effect in the following states on April 1, 2022:
- Alaska: (Sales and use tax rates in some jurisdictions, including the city and borough of Sitka, fluctuate throughout the year, with a rate increase effective April 1)
- New Mexico (adult-use cannabis sales)
- New York (adult-use cannabis sales)
- Virginia (disposable bag tax in the city of Falls Church)
See our 2022 state sales tax rates for resources and sales tax rate information.
New use tax proposed in the Show-Me State
On April 5, the city of Columbia, Missouri, is voting on a proposition that will impose a local use tax on purchases made from online vendors located outside the state. Proponents of the bill state that this tax would help the city maintain its revenue and bring an estimated $5.6 million into the city, but local economic nexus requirements like this one can really complicate sales tax compliance for remote sellers.
States adopt gas tax holidays
Michigan senators approved a temporary gas tax suspension to alleviate some of the Great Lake State residents’ pain at the pump. Currently, the tax rate on all types of fuel is 27 cents per gallon, one of the highest in the nation. This is just one of the many proposals for a “gas tax holiday” or other cost-saving measures states are proposing, after President Biden called for a ban on Russian oil imports. Both Georgia and Maryland instituted gas tax holidays on March 18, 2022, and Connecticut and Florida are among the states looking to follow their lead.
April sales tax holidays
Two states are offering more traditional sales tax holidays in April: Missouri and Texas.
During Missouri’s Show Me Green Sales Tax Holiday, April 19–25, 2022, Energy Star products priced $1,500 or less are exempt from sales and use tax.
The following products are exempt from Texas sales and use tax during the Lone Star State’s Emergency Preparation Supplies Sales Tax Holiday, April 23–25, 2022:
- Hurricane shutters and emergency ladders priced less than $300
- Portable generators priced less than $3,000
- Specified emergency preparation supplies priced less than $75
This sales tax holiday applies to state and local sales tax, and participation is mandatory.
Cover photo by Canva
Stay up to date
Sign up for our free newsletter and stay up to date with the latest tax news.