Simplifying Sales Tax

What is Streamlined Sales Tax?

This is an agreement to minimize costs and administrative burdens on retailers that collect sales tax, particularly retailers operating in multiple states. It also encourages “remote sellers” selling over the Internet and by mail order to collect tax on sales to customers living in the Streamlined states. This agreement levels the playing field by forcing “brick-and-mortar” stores and remore sellers to operate under the same rules. Finally, it ensures that all retailers can conduct their business in a fair, competitive environment.

This system was created by the National Governor’s Association (NGA) and the National Conference of State Legislative (NCSL) in 1999.

It simplifies sales tax administration by tapping into more efficient administrative procedures and emerging technologies. This process leads to i) uniform tax definitions ii) uniform and simpler exemption administrative iii) rate simplification iv) state-level administration of all sales tax v) uniform sourcing.

Business that use Streamlined are immune from audit liability for the sales they process through the software. In addition, states pay the costs of this service for any business that does not have a physical presence in the state.

The innovations of Streamlined are i) business no longer have to wonder how one states’ definition differs from another state ii) they only need to know whether the produc or service they sell is taxable or exempt.

The reduction of business administrative expenses happen through i) uniform definitions ii) rate simplification iii) rate and boundary databases iv) state level tax administration v) uniform sourcing rules vi) uniform exemption administration vii) uniform audit procedures and viii) state funding.

http://www.streamlinedsalestax.org/index.php?page=faqs