New Tax Rates
The following tax rates are in effect as of July 1, 2011:
The general sales and use tax rate increases from 6% to 6.35%;
- The room occupancy tax increases from 12% to 15%;
- The tax on the rental or leasing of a passenger motor vehicle for a period of 30 consecutive calendar days or less increases from 6% to 9.35%;
- A tax rate of 7% applies to the following: the sale for more than $50,000 of most motor vehicles, the sale for more than $5,000 of jewelry (whether real or imitation), the sale for more than $1,000 of an article of clothing or footwear intended to be worn on or about the human body, a handbag, luggage, umbrella, wallet or watch.
Newly Taxable Services.
Effective July 1, 2011, sales of the following services are taxable:
- Services rendered in the voluntary evaluation, prevention, treatment, containment or removal of hazardous waste or other contaminants of air, water or soil;
- Valet parking provided at any airport;
- Yoga instruction provided at a yoga studio;
- Motor vehicle storage services;
- Packing and crating services;
- Motor vehicle towing and road services;
- Intrastate transportation services provided by livery services, with certain exceptions, including nonemergency medical transportation provided under the Medicaid program, certain paratransit services and dial-a-ride services;
- Pet grooming, pet boarding services, and pet obedience services;
- Services in connection with a cosmetic medical procedure;
- Manicure services, pedicure services and all other nail services; and
- Spa services.
Exemptions Repealed
Effective July 1, 2011, the following exemptions are repealed:
- Clothing and footwear under $50;
- Nonprescription drugs and medicines, and smoking cessation products; and
- Cloth or fabric for noncommercial sewing, and yarn for noncommercial use.
