Tax rates are not fixed. States, counties, cities, and special districts change their rates on their own schedules, and those changes flow directly into the combined rate Kintsugi calculates on your transactions. This article explains why rates change, when a new rate takes effect, and how you can confirm the rate applied to any transaction.
A jurisdiction can change its rate for several reasons:
New legislation. A state may raise, lower, or sunset a rate through a bill, sometimes with a built-in expiration or reversion date.
Voter-approved measures. Cities, counties, and special districts often adjust rates after a local ballot measure for transit, tourism, stadiums, or other funded programs.
Expiring or renewing district taxes. Special district taxes are frequently temporary and either expire or get renewed at a set date.
Economic triggers. Some states tie rate changes to revenue targets or other formulas written into law, so a rate can shift without a new bill.
Every rate change has an effective date set by the jurisdiction, and Kintsugi applies the rate that was in effect on the date of the transaction, not the date an invoice is created, approved, or filed.
Local rate changes (county, city, and special district) most commonly take effect on a standard quarterly cycle: January 1, April 1, July 1, or October 1.
State-level rate changes can take effect on any date set by the legislation, and may include a future sunset or reversion date.
Backdated transactions are calculated using the rate that applied on the transaction date, so two invoices for the same address created on the same day can show different rates if the transaction dates fall on either side of an effective date.
Kintsugi's rate engine is updated from official state and local tax authority sources ahead of published effective dates, so the correct rate applies automatically once a change takes effect. You don't need to update anything in your account for a routine rate change to apply correctly.
Jurisdictions publish rate changes on their own timelines, and some send notices directly to registered businesses. Kintsugi does not currently send a proactive alert for every individual rate change in every jurisdiction you're registered in. If you want to confirm the rate on a specific transaction:
Open the transaction in Kintsugi and review the rate breakdown for that ship-to address.
Compare the transaction date against any effective date you've seen referenced in a state or local notice.
If the numbers still don't line up, contact us with the details below and we'll review it.
For a full breakdown of how the combined rate on a transaction is built, see How Kintsugi Calculates Your Sales Tax Rate.
Full transaction address
Transaction date
The rate Kintsugi applied
The rate you expected, and your source for it (state notice, DOR website, etc.)
Transaction ID, order ID, or invoice number
Q: A jurisdiction told me a new rate took effect, but I still see the old rate on a transaction. What's going on?
A: Check the transaction date first. Kintsugi applies the rate in effect on the transaction date, so anything dated before the effective date will reflect the prior rate.
Q: Will I get a notification when a jurisdiction I'm registered in changes its rate?
A: Not automatically today. Rate updates apply to your transactions automatically, but Kintsugi doesn't currently send a per-jurisdiction alert. If staying ahead of a specific state's changes matters to you, that state's Department of Revenue site is the most reliable source for upcoming effective dates.
Q: Can a rate change apply retroactively?
A: Rate changes take effect on the date set by the jurisdiction and apply going forward from that date. They don't change the rate on transactions dated before the effective date.
Q: Why did my combined rate change even though the state rate stayed the same?
A: A change in the combined rate can come from a county, city, or special district layer rather than the state layer.
If you can't find the answer you're looking for, our team is happy to assist. Just use the chat bubble in the bottom-right corner to get in touch.
