How do uniform definitions reduce business administrative expenses?
Answer: While states do not vary much in the products and services they tax or exempt, they do vary significantly in how they define these products and services. A business selling a product or service in multiple states must know not only what is or is not taxable in each state, but also how one state’s definition differs from other states. The Agreement defines sixty-nine different administrative terms and products and services that states either tax or exempt. A business making sales into a Streamlined state only needs to know whether the product or service they sell is taxable or exempt. Businesses no longer have to wonder how one state’s definition differs from another state.