Sales tax measures on the ballot: November 5th, 2024
by October 11, 2024
As we approach the November 2024 elections, several state sales tax initiatives are set to be on the ballot, potentially impacting both businesses and consumers. From proposed local tax increases in California to exemptions for essential items such as groceries and diapers in Nevada and South Dakota, residents will have the opportunity to shape their communities’ tax structures.
Staying informed about these changes is crucial for businesses making sales in these states, as they may need to adjust their sales tax compliance practices accordingly. With over 11,000 taxing jurisdictions in the US, navigating sales tax obligations can be daunting. Fortunately, solutions like TaxJar can help simplify the process, ensuring businesses remain compliant regardless of legislative shifts. In this blog, we’ll break down the key initiatives on the ballot and what they mean for businesses and consumers.
California
A few cities in California have introduced local sales tax rate increases:
- Residents in the city of Sonoma will vote on a measure that would create a 0.5% sales tax.
- The Brawley City Council has introduced a 1% sales tax rate increase to fund community services and programs. If passed, the Brawley city sales tax rate would increase to 8.75%.
- Residents in Pleasanton will vote on a 0.5% sales tax increase to fund public safety, parks and street maintenance, and community programming.
Businesses making sales in California must stay informed about these sales tax rate changes, to ensure they are charging the correct amount of sales tax to customers in the state. With so many taxing jurisdictions in the US, there’s a lot to track. However, maintaining compliance is critical to avoid costly penalties. A sales tax solution like TaxJar makes this easy. TaxJar automatically updates rates as legislation changes, so you are always collecting the right amount of sales tax. Getting started with TaxJar is easy, sign up for a free 30-day TaxJar trial today.
Nevada
In Nevada, residents will vote on Question 5, which would exempt adult and child diapers from the state sales tax. Since these items are commonly viewed by the states as necessities, many states exempt them from state sales tax. Advocates for passing this initiative cite the rising cost of groceries for Nevada residents, including the average $1,000 Nevada families spend on diapers each year, per child, resulting in $84 paid in sales tax on these purchases.
South Carolina
Residents in Greenville, South Carolina will vote on a 1% sales tax, with the intent to use the money to repair roads. If approved, this sales tax would go into effect in May 2025. Greenville is one of the few counties in South Carolina to never have had a sales tax initiative approved by voters.
South Dakota
South Dakota residents will vote on Measure 28, an initiative that would prohibit state sales tax on items sold for human consumption, excluding alcoholic beverages, tobacco, and prepared foods. If passed, this would eliminate the 4.2% state sales tax on grocery items. This would not impact local governments, which would still have the authority to tax grocery items in their area.
If this passes, South Dakota would join the large majority of states that exempt grocery items from state sales tax. Businesses that make sales of grocery items in South Dakota would have until July 2025 to update their tax compliance process on these items to remain compliant.
How TaxJar can help
Managing your sales tax responsibilities can be a challenging task. With over 46 different state sales tax nexus laws, 11,000 taxing jurisdictions, and the constantly changing regulations, there’s a lot to track. However, maintaining compliance is critical to avoid costly penalties. While these ballot initiatives are limited to November 5, 2024, states and local governments can also make changes to their sales tax legislation throughout the year, without much notice.
That’s where TaxJar can help. Our team constantly monitors the latest sales tax laws at the state, county, city, and special taxing district level. When tax rates change, we apply them immediately to our platform. You don’t need to keep up with all of the changes, as well as product exemptions and sales tax holidays, to remain compliant. Learn more about TaxJar and get started with a free, 30-day trial today.
