Seasonal Sales Tax Rates

Pumpkin spice is in the air (and in your coffee, your baked goods, maybe your bathtub…), Halloween is coming up, and then it’s a fast slide through Thanksgiving and Christmas to a new year.

While you’re enjoying seasonal changes all over, don’t overlook seasonal sales tax changes.

Seasonal sales tax changes might be new to you

You might not have dealt with seasonal changes in the past. Until the Supreme Court’s Wayfair decision allowed states to compel remote sellers to collect and remit sales taxes, you only had to think about seasonal sales tax rates if you happened to have them in your state or the few other states in which you had nexus.

Now it’s everybody’s problem.

Alaska

One example of a state with seasonal tax rates is Alaska. Alaska doesn’t have a statewide sales tax, but municipalities can all charge sales tax, and 107 do. Those that charge sales tax often have two different tax rates. They charge less from October to April, and more for April to October.

Whitter, for example, charges sales tax only from April to September 30th. The winter sales tax rate is zero. Skagway does the same — but only for retail sales. That would exempt other kinds of sales taxes, such as raw fish taxes or hotel bed taxes, from the winter holiday.

Other municipalities charge sales tax all year, but at different rates. For example, Galena charges 3% in the winter and 6% in the summer. Some have not sales tax on food in the winter but tax it in the summer. This helps people who work seasonally, and also allows Alaska to share municipal costs with summer tourists.

South Dakota

South Dakota levies an extra 1.5% sales tax from June through September on businesses that rely on tourists. Hotels and restaurants are subject to tourism tax all year, but the seasonal tax on “visitor-intensive businesses” may be harder to define.

For example, a visitor site which interprets culture or history — say a museum — may also sell products on a retail basis. Those sales are subject to the tourist tax. If you are a manufacturer and you accept special orders from visitors to that museum which you drop-ship to the end consumer, you might be subject to that tax. If you sell directly to the museum, you don’t have to collect  tourism sales tax, whether the museum will be using the goods you provide or selling them on to end users.

Affected businesses range from bungee jumps to zoos, gold courses to spas.

Solution: Sales Tax DataLINK

It’s hard to keep track of all the sales tax rates in the country, let alone special seasonal rates. Sales Tax DataLINK makes the difference. We offer unparalleled accuracy — and we can take on all your sales tax compliance requirements. Call 479-715-4275 and let us impress you.

Latest Articles

Sales Tax Software

Sales Tax Software

Sales tax calculations and filing can be done by hand. When you make a sale, you figure out whether the goods and services are taxable and whether you have nexus in the buyer's tax jurisdiction. More on that later. Once you've determined that you need...

read more
Customer Service and Your Sales Tax Solution

Customer Service and Your Sales Tax Solution

Sales tax is complicated. We've just gone through the annual flurry of back to school tax holidays, for example. If you're a remote seller of clothing, you probably sell mostly through retail. But you might have some direct to consumer sales. In some...

read more
Sales Tax Holidays for E-commerce

Sales Tax Holidays for E-commerce

A lot of our clients are manufacturers, contractors, or in some other industry that doesn't usually have to think much about sales tax. Retailers know they have to collect sales tax, and usually plan for it. We often hear from people who had no idea...

read more