Key takeaways
- Several U.S. states will implement local sales tax changes effective March 1, 2025, requiring updates to billing and POS systems.
- Alabama: The Town of Citronelle will stop taxing areas beyond city limits — ending police jurisdiction taxes.
- Louisiana: The City of Eros (Jackson Parish) will abolish its city tax, reducing the total rate to 9%.
- New York: Suffolk County increases its local sales and use tax rate from 4¼% to 4⅜%.
- Tennessee: Gallatin raises its local sales tax rate to 2.75%.
- Businesses should review rate tables and update accounting systems to stay compliant with the new rates.
As of March 1, 2025, several state, county, municipal, and district sales tax rates will undergo changes across the United States. Businesses operating in these areas should take note of the updates to ensure compliance with the latest regulations. Below is a summary of the key changes:
Alabama
- The Town of Citronelle has discontinued its police jurisdiction beyond the city's corporate limits.
- As a result, Citronelle taxes and fees will no longer be levied in the former police jurisdiction area starting March 1, 2025.
Louisiana
- The city tax in Eros (Jackson Parish) will be abolished.
- This change will result in a 9% total sales tax rate for transactions in Eros.
New York
- The local sales and use tax rate in Suffolk County will increase from 4¼% to 4⅜%.
Tennessee
- The City of Gallatin is raising its local sales tax rate to 2.75%.
Staying informed about sales tax updates is crucial for businesses to maintain compliance and avoid unexpected liabilities. If you operate in any of the affected regions, be sure to update your tax settings accordingly.
Frequently asked questions
When do these tax changes take effect?
On March 1, 2025.
What’s changing in Alabama?
The Town of Citronelle will no longer apply taxes outside its corporate limits.
What’s the update for Louisiana?
The city tax in Eros (Jackson Parish) is being abolished, leading to a total 9% sales tax rate.
Which county is affected in New York?
Suffolk County, where the local sales and use tax rate increases to 4⅜%.
What’s changing in Tennessee?
The City of Gallatin raises its local sales tax rate to 2.75%.
What should businesses do?
Update all tax calculation systems, invoices, and POS tools before March 1 to ensure compliance.
