Streamlined Sales Tax Governing Board, Inc.
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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
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
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
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
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.
have a total population of 92,781,860 representing 33% of the country’s population.
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