§ 103351 Local Tax Ordinance Timing

• •A new tax rule can’t be used right away after it’s adopted.
• •You must wait at least 180 days before the tax can start.
• •The tax begins on the first day of the first calendar quarter that starts after those 180 days.

A town council votes to add a sales tax on January 1. The law says the tax can’t start until at least 180 days later, so the first quarter that begins after those 180 days is July 1. The tax becomes active on July 1.

Even though the town approved the tax on Jan. 1, businesses don’t have to collect it until July 1 because the law forces a 180‑day waiting period and then starts on the first day of the next quarter.