5 States That Just Lowered Gross sales Taxes — and 1 That Raised Them

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Shift Drive / Shutterstock.com

Happy new (fiscal) 12 months! Well, perhaps not for the tax man.

July 1 marked the beginning of a brand new fiscal 12 months within the overwhelming majority of U.S. states. That’s when new tax insurance policies normally kick in and, in at the very least a small handful of states, these embrace decrease gross sales taxes.

Here’s a take a look at the place shoppers will save a bit extra beginning this month — and one state the place they’ll pay a bit extra.

New Mexico

New Mexico CapitolZack Frank / Shutterstock.com

For the primary time in additional than 40 years, New Mexico has lowered its gross sales tax fee. On July 1, it fell by one-eighth of a share level — from 5.125% to a brand new fee of 5% — and the state plans to chop it by one other one-eighth of a share level in 2023, in keeping with the Albuquerque Journal.

Each of those two cuts will maintain an estimated $94 million in shoppers’ pockets.

Maryland

Annapolis, Marylandtokar / Shutterstock.com

Unlike New Mexico, Maryland isn’t reducing its total gross sales tax fee — however it’s making extra issues exempt from gross sales tax.

According to WBAL-TV, recent exemptions embrace:

  • Baby merchandise together with diapers and child wipes
  • Medical gadgets resembling sure blood stress displays and pulse oximeters
  • Diabetic care merchandise
  • Oral hygiene merchandise

The unhealthy information: Maryland’s taxes on gasoline elevated on July 1, as we element in “7 States That Just Raised Their Gas Taxes.”

Louisiana

Louisiana Capitol building in Baton RougeFang Deng / Shutterstock.com

Louisiana already exempted medicine prescribed by physicians and dentists from gross sales tax on the state degree. But as of July 1, medicine for the therapy of sure situations, from migraines to dementia, are exempt on the native degree, too.

Illinois

Cook County IllinoisNina Alizada / Shutterstock.com

This ought to come as a aid to anyone in Illinois who eats meals: The state on July 1 started a 12-month-long gross sales tax vacation on groceries, which means that groceries is not going to be topic to gross sales taxes throughout that point.

A scheduled statewide tax enhance on gasoline was additionally postponed, though a number of counties went forward with will increase to their gasoline taxes, as we element in “7 States That Just Raised Their Gas Taxes.”

Florida

Tallahassee, FloridaFelix Mizioznikov / Shutterstock.com

A current legislative bundle in Florida offered for a number of gross sales tax holidays, together with the next prolonged holidays that began July 1:

  • Diapers and child and toddler clothes (for one 12 months)
  • Energy Star home equipment (for one 12 months)
  • Hurricane-proofing dwelling upgrades resembling impact-resistant doorways, home windows and storage doorways (for 2 years)

You can learn the main points about these and different gross sales tax holidays on the Florida Department of Revenue’s “​Tax Holidays and Exemption Periods​” web page.

Colorado

Colorado Capitol in DenverJoseph Sohm / Shutterstock.com

Colorado created a brand new “retail supply charge” that took impact on July 1 and, in keeping with the Tax Foundation, capabilities like a tax.

This 27-cent charge usually applies to deliveries which are mailed, shipped or in any other case made by motorized vehicle, together with orders from on-line retailers and marketplaces.

On the brilliant (or at the very least dim) aspect, the charge is per order, not per particular person merchandise bought.

Disclosure: The data you learn right here is at all times goal. However, we typically obtain compensation whenever you click on hyperlinks inside our tales.

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