May 2025 U.S. Sales Tax Updates
As of May 1, 2025, several new sales tax changes will go into effect across the United States, impacting businesses operating or selling into Alabama, Alaska, and South Carolina. These changes include new tax jurisdictions, rate increases, and the expiration of certain local levies.
Alabama: new tax jurisdictions added
Two Alabama cities are now under the Alabama Department of Revenue’s tax collection and administration:
- City of Sheffield: Following Resolution No. 03172025, the state will begin collecting sales and use taxes on the city’s behalf.
- City of Glencoe: Under Resolution No. 25-02, the state will collect sales, use, rental, and lodging taxes.
First tax filings for both cities will be due by June 20, 2025, covering the period ending May 31, 2025.
Alaska: Elim joins remote seller tax commission
While Alaska has no statewide sales tax, local municipalities continue to manage their own tax systems. The City of Elim is the latest to join the Alaska Remote Seller Sales Tax Commission (ARSSTC). As of May 1, 2025, remote sellers meeting nexus thresholds must collect a 3% local tax on sales delivered to Elim.
South Carolina: county rate adjustments and expirations
Multiple counties in South Carolina are making significant local tax adjustments starting May 1, 2025:
- Georgetown County: New 1% Capital Projects tax. Total rates: 7% (general), 8% (accommodations).
- Horry County: The previous 1% Capital Projects tax will expire (effective April 30, 2025), and a new 1% Transportation tax will begin. Total rates: 8% (general), 9% (accommodations).
- Jasper County: New 1% Transportation tax. Total rates: 9% (general), 10% (accommodations).
- Sumter County: New 1% Capital Projects tax. Total rates: 8% (general), 9% (accommodations).
- Williamsburg County: The 1% Capital Projects tax will expire (effective April 30, 2025).
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