Key takeaways
- Multiple U.S. state and local sales tax changes take effect on May 1, 2025, impacting Alabama, Alaska, and South Carolina.
- Alabama: The cities of Sheffield and Glencoe now fall under state tax collection via the Alabama Department of Revenue.
- Alaska: The City of Elim joins the Alaska Remote Seller Sales Tax Commission (ARSSTC), requiring remote sellers to collect a 3% local tax.
- South Carolina: Several counties introduce or expire local 1% project and transportation taxes.
- Businesses should update tax software and filings before June 20, 2025 to ensure full compliance.
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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Frequently asked questions
Which states are affected by the May 2025 changes?
Alabama, Alaska, and South Carolina.
What’s changing in Alabama?
The cities of Sheffield and Glencoe are now administered directly by the Alabama Department of Revenue.
When are the first filings due?
By June 20, 2025, covering the period ending May 31, 2025.
What’s new in Alaska?
The City of Elim joined the ARSSTC, requiring remote sellers to collect a 3% local tax.
What changes occur in South Carolina?
Several counties are adding or ending 1% Capital Projects or Transportation taxes, adjusting local sales tax rates.
How can businesses stay compliant?
Regularly update sales tax systems, confirm local rate changes, and verify filing deadlines with each state’s Department of Revenue.
