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Streamlined Sales Tax Project updated 10/9/08

Link to Streamlined Sales Tax Site http://www.streamlinedsalestax.org/ new 11/7/05

Links to related news updates on News and miscellaneous legal topics pages:

The Streamlined Sales Tax (SST) Compliance Review and Interpretations Committee (CRIC) has established a 30-day public comment period for state compliance issues identified during its review of state recertification documents. The SST Agreement requires that each member state certify by August 1 of each year that it is still in compliance with the Agreement. Written comments should be sent by November 1 to Scott Peterson, Executive Director of the SST Governing Board, at Scott.Peterson@SSTGB.org. The CRIC will meet in a public teleconference on November 6, 2008, to review the comments. The CRIC's report on the 2008 recertification. new 10/9/08

Missouri legislation

On December 1, 2008, the Missouri Senate introduced S.B. 19 to conform the state's laws to the Streamlined Sales and Use Tax (SST) Agreement, effective August 28, 2009. Similar conformity legislation was introduced but failed to pass in four previous legislative sessions. new 12/17/08

Missouri introduced, but did not enact, S.B. 1020, to comply with the streamlined sales and use tax agreement. The legislation failed to leave the Ways and Means Committee before the Legislature's session ended on 5/16/08. updated 5/30/08

The Streamlined Sales Tax (SST) Governing Board amended the SST Agreement to allow states that meet specified requirements (i.e. it must be an intrastate sale, excluding over-the-counter sales or leases and rentals) to become full members while continuing to source sales on an origin basis at the end of 3 days of meetings in Dallas, December 10-12, 2007. A state that has local jurisdictions that levy or receive sales or use tax may elect to source retail sales of tangible personal property or digital goods to the location where the order is received by the seller, rather than to the location where receipt by the purchaser occurs (or is presumed to occur). The seller's sales tax recordkeeping system must capture the location where the order is received to qualify. new 12/27/07

A number of states are engaging in ongoing work on a Streamlined Sales Tax Agreement, under which member states could eventually compel remote sellers to collect and remit sales and use tax on sales to purchasers in that state.

Once the Agreement goes into effect, it will remain a voluntary collection system as far as sellers without a physical presence in a given state are concerned. Collection by such remote sellers will become mandatory only if a court of competent jurisdiction rules that the complexity concerns underpinning Quill Corp. v. North Dakota, 504 U.S. 298 (1992), have been resolved, or if federal legislation is enacted granting states collection authority over remote sellers.

One of the goals is simplification and uniformity to facilitate compliance by remote sellers.

For the agreement to be implemented requires:

  1. Federal legislation giving states, in return for sales tax simplification, authority to require sellers to collect sales and use tax on remote sale, and
  2. by the terms of the Agreement, 10 states comprising 20% of the total population of all states imposing a state sales tax to petition for membership and have been found to be in compliance with the Agreement.

Optimistic supporters of the Agreement believe that could occur as soon as July 1, 2004. The Streamlined Sales and Use Tax (SST) Agreement came into effect on October 1, 2005. updated 11/13/05

The National Conference of State Legislatures (NCSL) Executive Committee Task Force on State and Local Taxation of Telecommunications and Electronic Commerce at NCLS's July 21, 2003, annual meeting, reported that there are currently 39 Streamlined Sales Tax Implementing States (those that have adopted legislation authorizing them to enter into the Agreement), and to date, 20 states have passed legislation conforming their laws to the requirements of the Agreement. The group also restated its position on linking of federal legislation of the issue of collection authority with the issue of nexus standards for business activity taxes, and updated its policy statement on "Nexus in the New Economy: Ensuring a Level Playing Field for All Commerce."

H.R. 3184, was introduced September 25, 2003. Retailers and government leaders debated the merits of a streamlined sales tax system at an October 1, 2003 hearing of the U.S. House Judiciary Committee's Subcommittee on Commercial and Administrative Law. The bill includes the following provisions:

Notes from the Streamlined Sales Tax Project (SSTP) and Streamlined Sales Tax Implementing States Meetings, Phoenix, November 17-19, 2003. The next meeting of the SSTP was scheduled for January 12-13, 2004, in San Diego, with Implementing States not expected to meet at that time.