Vertex’s Latest Tax Rates and Rules Report Highlights a Surge in District Taxes
Vertex Inc. (NASDAQ:VERX) has released its 2024 U.S. state and local End-of-Year Rates and Rules Report, revealing significant changes in the tax landscape. The report highlights a surge in district-level tax activity, with 171 new district taxes enacted in 2024, marking the third highest total in seven years.
Key findings include 251 city-level tax changes (up 30% from 2023) and 220 rate increases (up 40% from 2023). The state average tax rate dropped to a decade-low of 5.4%. Local governments are implementing new taxes to address fiscal pressures and funding needs for public services. The report also notes that district tax rate decreases outpaced increases, indicating evolving fiscal management strategies.
The report warns of potential fiscal uncertainty in 2025, as federal tax act funding expired at the end of 2024, which may lead states to seek additional revenue through sales tax implementation.
Vertex Inc. (NASDAQ:VERX) ha pubblicato il suo rapporto sui tassi e le regole di fine anno per i settori statali e locali degli Stati Uniti del 2024, rivelando cambiamenti significativi nel panorama fiscale. Il rapporto mette in evidenza un aumento nell'attività fiscale a livello distrettuale, con 171 nuove tasse distrettuali introdotte nel 2024, segnando il terzo totale più alto in sette anni.
I risultati chiave includono 251 cambiamenti fiscali a livello cittadino (in aumento del 30% rispetto al 2023) e 220 aumenti delle aliquote (in aumento del 40% rispetto al 2023). L'aliquota fiscale media statale è scesa a un minimo decennale di 5,4%. I governi locali stanno implementando nuove tasse per affrontare le pressioni fiscali e i bisogni di finanziamento per i servizi pubblici. Il rapporto osserva inoltre che le diminuzioni delle aliquote fiscali distrettuali hanno superato gli aumenti, indicando strategie di gestione fiscale in evoluzione.
Il rapporto avverte della potenziale incertezza fiscale nel 2025, poiché il finanziamento della legge fiscale federale scadrà alla fine del 2024, il che potrebbe spingere gli stati a cercare ulteriori entrate attraverso l'attuazione di tasse sulle vendite.
Vertex Inc. (NASDAQ:VERX) ha publicado su informe sobre las tasas y reglas a finales de año para los estados y localidades de EE.UU. de 2024, revelando cambios significativos en el panorama fiscal. El informe destaca un aumento en la actividad fiscal a nivel distrital, con 171 nuevos impuestos distritales implementados en 2024, marcando el tercer total más alto en siete años.
Los hallazgos clave incluyen 251 cambios fiscales a nivel municipal (un 30% más que en 2023) y 220 aumentos de tasas (un 40% más que en 2023). La tasa media de impuestos estatal cayó a un mínimo de una década de 5,4%. Los gobiernos locales están implementando nuevos impuestos para abordar las presiones fiscales y las necesidades de financiación de los servicios públicos. El informe también señala que las disminuciones en las tasas de impuestos distritales superaron los aumentos, lo que indica estrategias de gestión fiscal en evolución.
El informe advierte sobre la posible incertidumbre fiscal en 2025, ya que la financiación de la ley fiscal federal expira a finales de 2024, lo que puede llevar a los estados a buscar ingresos adicionales a través de la implementación de impuestos sobre las ventas.
Vertex Inc. (NASDAQ:VERX)는 2024년 미국 주 및 지방 연말 세율 및 규정 보고서를 발표하며 세금 환경의 중요한 변화를 공개했습니다. 이 보고서는 2024년에 시행된 171개의 새로운 지방세 증가를 강조하며, 이는 7년 중 세 번째로 높은 수치입니다.
주요 발견 사항으로는 251개의 시 세금 변경(2023년 대비 30% 증가) 및 220개의 세율 인상(2023년 대비 40% 증가)이 포함됩니다. 주 평균 세율은 5.4%로 10년 만에 최저치를 기록했습니다. 지방 정부는 재정 압박과 공공 서비스 자금 필요에 대응하기 위해 새로운 세금을 시행하고 있습니다. 보고서는 또한 지방세 세율 감소가 증가를 초과하여 세무 관리 전략의 발전을 나타낸다고 언급하고 있습니다.
이 보고서는 2025년에 잠재적인 재정 불확실성이 있을 것이라고 경고하며, 연방 세법 자금이 2024년 말에 만료되기 때문에 주들이 판매세 시행을 통해 추가 수익을 추구할 수 있다고 언급하고 있습니다.
Vertex Inc. (NASDAQ:VERX) a publié son rapport sur les taux et règles de fin d'année pour les États et collectivités locales des États-Unis de 2024, révélant des changements significatifs dans le paysage fiscal. Le rapport souligne une augmentation de l'activité fiscale au niveau des districts, avec 171 nouvelles taxes de district instaurées en 2024, marquant le troisième total le plus élevé en sept ans.
Les résultats clés incluent 251 modifications fiscales au niveau municipal (en hausse de 30 % par rapport à 2023) et 220 augmentations de taux (en hausse de 40 % par rapport à 2023). Le taux moyen d'imposition des États a chuté à un niveau bas historique de 5,4 %. Les gouvernements locaux mettent en œuvre de nouvelles taxes pour faire face aux pressions fiscales et aux besoins de financement des services publics. Le rapport note également que les diminutions des taux d'imposition des districts ont dépassé les augmentations, indiquant des stratégies de gestion fiscale en évolution.
Le rapport avertit d'une incertitude fiscale potentielle en 2025, car le financement des lois fiscales fédérales expirera à la fin de 2024, ce qui pourrait inciter les États à rechercher des revenus supplémentaires par la mise en œuvre de taxes de vente.
Vertex Inc. (NASDAQ:VERX) hat ihren Bericht über die End-of-Year-Preise und -Regeln für Bundesstaaten und Kommunen in den USA für 2024 veröffentlicht, der bedeutende Veränderungen im Steuerumfeld aufzeigt. Der Bericht hebt einen Anstieg der steuerlichen Aktivitäten auf Distriktsebene hervor, mit 171 neuen Distriksteuern, die 2024 eingeführt wurden, was die dritthöchste Gesamtzahl in sieben Jahren darstellt.
Zu den wichtigsten Ergebnissen gehören 251 Änderungen auf Stadtebene (30% mehr im Vergleich zu 2023) und 220 Erhöhungen der Steuersätze (40% mehr im Vergleich zu 2023). Der staatliche Durchschnittsteuersatz fiel auf ein Jahrzehnttief von 5,4%. Die Kommunalverwaltungen führen neue Steuern ein, um finanziellen Druck und den Finanzierungsbedarf öffentlicher Dienstleistungen zu bewältigen. Der Bericht weist auch darauf hin, dass die Senkungen der Distriksteuersätze die Erhöhungen überstiegen, was auf sich entwickelnde Strategien des fiskalischen Managements hinweist.
Der Bericht warnt vor möglicher finanzieller Unsicherheit im Jahr 2025, da die Mittel aus dem Bundessteuergesetz Ende 2024 auslaufen, sodass die Bundesstaaten möglicherweise zusätzliches Einkommen über die Einführung von Umsatzsteuern erzielen müssen.
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Insights
The surge in local tax complexity presents a compelling growth catalyst for Vertex's tax technology solutions. The reported 171 new district taxes and 251 city-level tax rate changes underscore an increasingly fragmented tax landscape that businesses cannot efficiently navigate manually. This complexity drives demand for automated tax solutions, directly benefiting Vertex's core business model.
The expiration of federal support to states at the end of 2024 creates a strategic opportunity. As states seek new revenue streams, they're likely to implement more complex tax structures, potentially accelerating the adoption of tax management solutions. The report's timing and depth of insights position Vertex as an authoritative voice in tax policy, enhancing their market leadership.
The global expansion of VAT systems and e-invoicing mandates across 75+ countries presents a significant market opportunity. Vertex's established expertise in handling complex U.S. tax scenarios positions them well to capture international market share as businesses seek solutions for global tax compliance. The company's focus on thought leadership through detailed market analysis demonstrates their commitment to staying ahead of tax technology trends.
The data suggests an acceleration in tax complexity that could drive sustained revenue growth for Vertex. Their ability to process and analyze vast amounts of tax data, evidenced by this comprehensive report, provides a competitive moat in an increasingly technical tax compliance landscape.
The 2024 End-of-Year Report showcases significant changes in the tax landscape, indicating additional complexity in 2025
KING OF PRUSSIA, Pa., Jan. 29, 2025 (GLOBE NEWSWIRE) -- Vertex Inc. (NASDAQ:VERX) (“Vertex” or the “Company”), a global provider of tax technology solutions, today released the findings of their 2024 U.S. state and local End-of-Year Rates and Rules Report. It highlights notable growth in district-level tax activity, including an increase in new district taxes and rate changes, as local governments respond to economic pressures and fiscal challenges heading into 2025.
Amid rising demand for public services and the need to address fiscal pressures, local governments continue to add new levies at a high rate. In 2024, 171 new district taxes were enacted, marking the third highest total in the past seven years, along with 51 new taxing cities and three new taxing counties. The bi-annual report, which outlines the evolving and complex U.S. sales tax landscape, uncovers key year-over-year trends.
"Looking back at 2024, the U.S. saw record-breaking activity at the city level with rate changes soaring and new district taxes reaching a 10-year high,” said Michael Bernard, Vertex VP Chief Tax Officer. “Now that 2025 is underway, indirect tax leaders must leverage this data to inform and refine their plans – ensuring they are prepared to navigate substantial changes and increased complexities throughout the year.”
Key findings from the Vertex 2024 End-of-Year Sales Tax Rates and Rules Report include:
- Shifting dynamics in local tax structure – Districts are increasingly adopting sales taxes to address specific funding needs, such as public safety and utilities. The 171 new district taxes enacted in 2024 represent a considerable increase in local tax activity. Notably, however, the number of district tax rate decreases outpaced increases—a rare occurrence that highlights evolving fiscal management strategies.
- Local governments feel the squeeze – Local municipalities continue to feel ongoing economic headwinds and are tasked with identifying additional revenue streams to close the gap that inflation and other challenges create. Vertex reports 251 city-level tax rate changes - one of the highest numbers in the past decade and up
30% from 2023 - and 220 rate increases, up almost40% from 2023. - States see record decrease, for now – The state average tax rate dropped to the lowest level in a decade, to
5.4% , but a new administration could usher in fiscal uncertainty at the state level. Federal tax acts passed during the previous administration offered support to the states, particularly pandemic relief, green initiatives, infrastructure and prescription medications. But that funding expired at the end of 2024 meaning many states could be in search of revenues via other avenues – and likely, through implementing additional sales tax.
Global Trends to Watch
In 2024, over 75 countries, including the U.S., held elections, paving the way for political transitions and policy changes in 2025. Many have already raised VAT tax rates to address inflation, defense spending, and growing social service demands, with more increases expected. Countries are also focusing on digital services to create fairer tax systems and boost collections. E-invoicing mandates are progressing across Europe and other regions, increasing complexity for businesses and highlighting the need for robust tax compliance systems. Additionally, Brazil is set to implement its most significant indirect tax reform since the 1960s next year.
While this analysis is outside the scope of the report, these global trends are shaping the broader tax landscape. Vertex will provide deeper insights on these developments in upcoming thought leadership blogs.
Implications for Indirect Tax Teams in 2025
As the sales tax landscape becomes increasingly complex and the global shift towards VAT and e-invoicing slowly comes to fruition, indirect tax teams must lean on technology for comprehensive tax management in 2025. Cross-functional collaboration, streamlined processes, leveraging tax automation applications, increased visibility and continuous education are vital to keeping pace with tax rate and rule changes. Together, these efforts ensure business continuity and a consistent, superior customer experience.
For more information, download the full report.
About Vertex
Vertex, Inc. is a leading global provider of indirect tax solutions. The Company’s mission is to deliver the most trusted tax technology enabling global businesses to transact, comply and grow with confidence. Vertex provides solutions that can be tailored to specific industries for major lines of indirect tax, including sales and consumer use, value added and payroll. Headquartered in North America, and with offices in South America and Europe, Vertex employs over 1,500 professionals and serves companies across the globe.
For more information, visit www.vertexinc.com or follow us on Twitter and LinkedIn.
COPYRIGHT © 2025 VERTEX, INC. ALL RIGHTS RESERVED. THE INFORMATION CONTAINED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY, MAY CHANGE AT ANY TIME IN THE FUTURE, AND IS NOT LEGAL OR TAX ADVICE.
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