Effective April 1, 2016, the City of Shelton’s sales tax rate increased from 8.6% to 8.8%. This rate increase is due to the establishment of a Transportation Benefit District (TBD), and the taxes generated will be used for transportation services. As local consumers, we all just need to get used to paying a higher rate of sales tax, however for businesses the change requires some additional complexity.
If your business reports on a “cash basis” method with the Department of Revenue, invoices that were sent out at the old tax rate, but not received until after 4/1/16, will need to be reported during the period the actual sale occurred, in order to report and pay the correct sales taxes collected. This would mean for most businesses, that they would need to amend the excise return for the period in question, and include the sale that was received after the April 1st sales tax increase.
If your business reports on an “accrual basis” method with the Department of Revenue, the change should be seamless, aside from making sure that you setup any invoices after April 1st using the new rate of 8.8%.
If you need assistance with updating your accounting software, registers, etc., just contact us and we would be happy to assist you with implementing this change for your business.