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7 State Sales Tax Rate Changes in 2013


 State sales tax rate changes are big news. Really.

Seven states in 2013 had or will have a state sales tax rate change. That's big news for anyone who does business in those states.

Arizona: A temporary tax that in 2010 increased the state transaction privilege tax by 1% expired on May 31, 2013. Effective June 1, 2013, the new state transaction privilege tax rate for most transactions is 5.6%.

Arkansas: The state sales tax rate increased by 0.5% on July 1, 2013. The new state sales tax rate is 6.5%. In addition, the manufacturing utilities reduced rate increased to 3.25%, and the electricity manufacturing reduced rate increased to 4.75%. The reduced rate for food remained the same, at 1.5%.

California: The state sales tax rate increased by 0.25% on January 1, 2013. The new state rate is 6.5%. However, California imposes a mandatory minimum local rate of 1%, which effectively brings the state rate to 7.5%.

Kansas: The state sales tax rate decreased from 6.3% to 6.15% on July 1, 2013.

Maine: The state sales tax rate will increase 0.5% on October 1, 2013, bringing the state rate to 5.5%. This increase is temporary and is set to expire on June 30, 2015. Additional information is available in an informational bulletin issued by the Maine Department of Revenue.

Ohio: The state sales tax rate increased 0.25% on September 1, 2013. The old rate was 5.5%. The new rate is 5.75%.

Virginia: The state sales tax rate increased on July 1, 2013, and now not all regions have the same state rate. In most of the state, the basic state rate increased 0.3%, from 4% to 4.3%. In Northern Virginia and the Hampton Roads regions, however, the state rate increased 1%, from 4% to 5%.

Virginia also imposes a local sales tax rate of 1% for all regions. As a result, the total rate of state and local sales tax for most areas of Virginia is 5.3%; it is 6% for Northern Virginia and Hampton Roads.

Virginia has a separate rate of sales tax for vending machines. In most of Virginia the state vending machine rate is 5.3%, for a combined state and local rate of 6.3%. For Hampton Roads and Northern Virginia the state vending machine rate is 6%, for a combined state and local rate of 7%.

If it is challenging for businesses to keep track of state sales tax rate changes, it can be exhausting for businesses to keep track of local sales tax rate changes. Throw in sales tax holidays, sales tax exemptions, and ever-changing sales tax rules and regulations, and the folks responsible for tracking sales tax rate changes can be reduced to tears.

Keep your eyes dry. Use an automated sales tax solution.

photo credit: milena mihaylova via photopin cc


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.