Rate Locator System: Default Rates

In some ZIP+4 area codes there is an overlap of county and municipal boundaries. When this occurs, the statute provides that the lowest rate in the area shall apply. For example, City A has a combined state and city rate of 8%. City B has a combined state and city rate of 7.5%. If the ZIP+4 area code includes both City A and City B, the data system will assign a combined state and city rate of 7.5%. The collections from an area that includes more than one jurisdiction will be allocated, by the Tax Commission, between the jurisdictions based upon population. For those instances, the system will provide you with a code for you to use on your sales tax return.