Data has found that while there were no changes in state tax rates this year, something which has happened only twice in the past decade, local jurisdictions have, representing the vast majority of tax increases this year, said Accounting Today. Tax compliance software firm Vertex said that, of the rate changes that have happened this year, 69 percent have been at the district level and 75 percent were at the city level, with both figures representing the highest rate of change in more than a decade. This is likely due to jurisdictions, hit hard by the pandemic's economic chaos, doing what they can to plug budget holes in the absence of federal aid. While this jump is steep, it represents a trend that had been ongoing even before the pandemic: over the past three decades, local jurisdictions have leaned increasingly on transaction taxes to support themselves in the absence of other revenue sources like federal aid.

Those interested in the implications of this from the government side might be interested in the upcoming FAE seminar Governmental Accounting and Auditing Update Webcast on Oct. 20. Those interested in what this means from a client perspective might be interested in the Tax and Financial Planning for Individuals Conference, scheduled for Nov. 12.