Institute for Professionals in Taxation®
Sponsored Research: Locally Administered Sales and Use Taxes
IPT seeks to broaden the value it has brought members through tax education over the last 40 years to include in-depth research targeted at issues important to our membership, including our mission of promoting the uniform and equitable administration of property, income and sales & use taxes and to minimizing the cost of tax administration and compliance.
We are pleased to release our first commissioned research initiative “Locally Administered Sales and Use Taxes,” which addresses the increased role that sales taxes have assumed in financing local governments. The research resulted in a three part-report intended to be used by taxpayers and practitioners, and may be considered by policymakers as they seek to improve their states’ tax systems.
We retained KPMG to research and draft this detailed report to address the increased role that sales taxes have assumed in financing local governments. Our goal was to review the issues with more rigor and specificity. Building on the extensive survey work and research, which has been reviewed by a team of academics, this report explains the issues that locally administered sales taxes present and provides an estimate of the incremental compliance costs for both taxpayers and governments, compared to local taxes administered by a single state tax administration agency. All survey data was collected in late 2015.
We anticipate that this “Locally Administered Sales and Use Taxes” report will be used by both taxpayers, governments and other SALT professionals to help create a tax community that is better informed and, ultimately, tax regimes that better aligns with the needs of both taxpayers and governments. We invite you to review the entire three part report below, or review the executive summary for a high-level overview of the study's findings and recommendations.