Summary of Content Changes
All States
- We added taxability explanations and scoping notes for the following PS Codes: 41030100 (Candy prepared with flour); 41030200 (Candy prepared without flour); 27070100 (OTC Drugs without a prescription); 27080100 (Medical Supplies-Disposable Gloves).
US Federal
- The Federal Universal Service contribution factor for the fourth quarter of 2024 has been set at a rate of 35.8%.
- On September 6, 2024, the order setting the new FCC Regulatory Fees was released. The annual fees for CMRS Mobile/Cellular Services and CMRS Messaging Services remain unchanged from last year. The Cable Television Systems annual fee has increased from $1.23 to $1.27. Also, the Interstate Telecommunication Service Provider annual fee has increased from $0.0054 per dollar (0.54%) to $0.00542 per dollar (0.542%). Finally, the Toll-Free annual fee has decreased from $0.13 to $0.12.
- The North American Numbering Plan contribution factor for Fiscal Year 2025 will be 0.00896%. This is a decrease from the Fiscal Year 2024 factor of 0.01047%.
Various States
- As part of our ongoing quality review, we have expanded our tax-on-tax content to encompass more tax types across a number of additional jurisdictions where a conservative interpretation of the tax imposition supports including the amounts collected for tax in the base of other taxes.
Alaska
- Effective October 1, 2024, the cities Ketchikan and Seldovia, as well as the county equivalent municipalities Sitka City and Borough and Skagway Municipality are switching to their seasonal rates for Q4 of 2024 and Q1 of 2025. This results in a sales and use tax reduction in all of the municipalities mentioned.
Arizona
- Effective October 1, 2024, the town of Queen Creek has repealed the additional 0.25% on certain business activities within the Queen Creek Special District (also referred to as the Town Center). As a result, the transaction privilege tax rates will be the same within the Queen Creek Special District as they are outside of the district.
Arkansas
- Effective October 1, 2024, the city of Carthage is imposing a 1.5% sales and use tax.
California
- Effective October 1, 2024, the city of La Cañada Flintridge has imposed a district sales and use tax of 0.75%. While California refers to these impositions as district taxes, the new rate applies throughout the city of La Cañada Flintridge.
- Effective October 1, 2024, Calaveras County has imposed a district sales and use tax of 1%. While California refers to these impositions as district taxes, the new rate applies throughout Calaveras County.
- The California Public Utilities Commission (CPUC) has proposed a decision in the Rulemaking 22-08-008 proceeding, which would establish the regulatory framework for VOIP providers. Opening comments are due by October 10, 2024, reply comments by October 15, 2024, and a final decision will be expected shortly thereafter. https://www.cpuc.ca.gov/industries-and-topics/internet-and-phone/interconnected-voip-carriers-rulemaking.
- While the law has stated that the User Fees are imposed on interconnected VOIP providers, the CPUC had previously offered no mechanism for nomadic VOIP providers to remit collections for the User Fees. Pragmatically, the User Fees could not be enforced against nomadic VOIP providers. As a result, we did not apply the User Fees to nomadic VOIP services within our content. This proposed decision would establish the necessary registration process for all VOIP providers to begin collecting and remitting those fees.
- Following this guidance, we will be taking these actions:
- Going forward, the inverse of the FCC's safe harbor rate will be applied to the calculation of the CPUC User Fees imposed on our VOIP PS codes where jurisdiction is undetermined or where the code involves a charge that includes both interstate and intrastate revenue. This change is effective in the October content.
- If this decision is finalized with little or no material revisions, we expect to begin applying the CPUC User Fees to the relevant nomadic VOIP PS codes, likely in next month's publication.
Colorado
- Effective October 1, 2024, the Energy Assistance System Benefit Charge has been increased to $0.81
Florida
- Effective October 1, 2024, the city of Atlantis is imposing a 5% municipal public service tax on electricity and natural gas. This rate applies to both residential and commercial customers, and there are no exemptions for manufacturing or for agricultural uses.
Georgia
- Effective October 1, 2024, Glynn County will no longer impose a sales and use tax on energy sold to manufacturers.
Illinois
- Effective October 1, 2024, the Illinois USF Assessment rate has increased from 2.5605% to 2.6495%.
Kansas
- Effective October 1, 2024, the city of Haysville has imposed a 1% sales and use tax.
Louisiana
- Effective October 1, 2024, two new Economic Development Districts (EDDs) within Jefferson Davis Parish will impose sales and use taxes. The new districts are Iowa-Lacassine EDD #1 and Roanoke EDD #1, and both occur within the unincorporated parish. Both will impose a 2% EDD sales and use tax rate.
- Effective October 1, 2024, West Monroe Riverfront Economic Development District has imposed a new 1% EDD sales and use tax.
Maryland
- Effective October 1, 2024, Maryland has imposed a new 988 fee on switched local exchange access service, CMRS, and other 988-accessible service except for prepaid wireless. This fee is in the amount of $0.25. The corresponding 988 fee on prepaid wireless service will go into effect on July 1, 2027. There is an exemption from these 988 fees for customers enrolled in the lifeline program that does not exist for the 911 fees.
Missouri
- Effective October 1, 2024, there have been numerous sales and use tax changes throughout the state of Missouri. Below are some of the noteworthy changes:
- Barton County and Nodaway County have adopted emergency services sales and use taxes to fund their 911 services. This means that the 15% 911 tax on landline services that existed in both counties is repealed effective October 1, 2024.
- The village of Fidelity has imposed a new sales tax, in the amount of 0.5%.
- The village of Loch Lloyd has imposed a new sales and use tax, in the amount of 1%.
- The city of Northwoods has imposed a new use tax, in the amount of 1.25%, to match its previously existing sales tax.
- The town of Raymondville has imposed a new sales tax, in the amount of 1%.
Minnesota
- After an internal review of the Minnesota Telephone Assistance Plan (TAP) imposition, we are reversing our decision to apply the surcharge to VOIP services. VOIP connections do not meet the definition of "access line" under Minn. Stat. 237.69.
Nebraska
- In addition to several rate changes in other cities, three cities have imposed a new sales and use tax effective October 1, 2024. The city of Adams has imposed a new 1% rate, and the cities of Grafton and Kenesaw have both imposed new rates of 1.5%.
Texas
- Last month, we created PRI/High-Capacity Trunk records for all of the Texas 911 districts. This was done as part of a broader project to better align our data structure with these districts' geography. This month, as part of an ongoing research inquiry, we have adjusted some of the district PRI records to reflect how PRI fees are assessed within each particular district. In Texas Administrative Code Title 1, Part 12, Chapter 255, Rule 255.4(a), the terms "local exchange access line" or "equivalent local exchange access line" are defined such that ISDN-PRI service consists of 24 access line equivalents. However, not all Emergency Communications Districts and Municipal Emergency Communications Districts follow this definition. We have adjusted the PRI fee in a number of jurisdictions where we have received responses to our inquiry. We will continue to adjust the PRI fees as we receive additional responses from jurisdictions in the coming months.
- Effective October 1, 2024, the city of Blue Mound has withdrawn from the Fort Worth Metropolitan Transit Authority district. At the same time, it has also increased its city sales and use tax from 1% to 1.5%.
Code Changes
All Code Table Changes are Summarized in the tables below:
Geocodes
Tax Authorities
Rate Changes
