streamlined_sales_tax_FAQ - Streamlined Sales Tax Governing...

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Streamlined Sales Tax Governing Board, Inc. See for more information. Frequently Asked Questions What is the Streamlined Sales and Use Tax Agreement? This Agreement is the result of the cooperative effort of 44 states, the District of Columbia, local governments and the business community to simplify sales and use tax collection and administration by retailers and states. The Agreement minimizes costs and administrative burdens on retailers that collect sales tax, particularly retailers operating in multiple states. It encourages "remote sellers" selling over the Internet and by mail order to collect tax on sales to customers living in the Streamlined states. It levels the playing field so that local "brick-and-mortar" stores and remote sellers operate under the same rules. This Agreement ensures that all retailers can conduct their business in a fair, competitive environment. Why was the Streamlined Sales Tax created? The Streamlined Sales and Use Tax was created by the National Governor’s Association (NGA) and the National Conference of State Legislatures (NCSL) in the fall of 1999 to simplify sales tax collection. According to the 2007 U.S. Census, general sales and gross receipts comprise nearly 32 percent of total state tax collections. The sales tax is second only to personal income taxes as the largest source of state revenue. Leaders from the NGA and NCSL are members of the Advisory Commission on Electronic Commerce that was created when the Internet Tax Freedom Act was passed. As a result of the work of this Commission, the leaders of those two organizations were concerned that a 1930’s sales tax would not be relevant in 21 st century commerce. This finding resulted in the nation’s governors directing their tax administrators to develop a simpler, business- friendly sales tax system. How many states have passed legislation conforming to the Agreement? To date, twenty-three of the forty-four states have passed the conforming legislation. Those states have a total population of 92,781,860 representing 33% of the country’s population. The following states that have passed legislation to conform to the Streamlined Sale and Use Tax Agreement: Arkansas, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Washington, West Virginia, Wisconsin and Wyoming. Recently, conforming legislation was
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This note was uploaded on 09/09/2011 for the course TAX 6845 taught by Professor Kelliher,c during the Fall '08 term at University of Central Florida.

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streamlined_sales_tax_FAQ - Streamlined Sales Tax Governing...

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