Streamlined Sales Tax Project

Statement to Private Sector, Individual, Company, or Organization Willing to Provide Expertise on Technical Issues
(Application to Provide Expertise to Project Work Groups)

Background
The Streamlined Sales Tax Project is an effort created by state governments with input from local governments and the private sector. The primary goal of the Project is to overhaul the existing sales and use tax system and implement a new, simplified system that accommodates interstate commerce and adapts itself to the burgeoning growth of electronic commerce. (A more complete description of the Project, a listing of the states participating in the Project, and a copy of its operating rules are also available on this website.)

Composition
The Project is directed by a Steering Committee and has established four Work Groups to address specific issues. These Work Groups include:

Tax Base and Exemption Administration

Tax Rates, Registration, Returns and Remittances

Technology, Audit and Privacy

Sourcing and Other Simplification Issues

Need for Expertise from the Private Sector
The Work Groups are encouraging input from the private sector and have found it useful to draw upon the expertise of individuals, companies, and organizations that have in-depth knowledge of different elements of the tax collection and administration process to help them analyze and resolve numerous technical issues. Therefore, the Project is establishing a database of companies and individuals that are willing, at the invitation of the Project, to volunteer their time and expertise to the Work Groups.

Areas of Expertise for Private Sector Input
There are several areas of expertise in which the Project would like to draw upon the knowledge of the private sector. These areas include:

Tax Base The Project’s goal is to develop common definitions for key parts of the sales tax (e.g., sales price, tangible personal property) as well as for certain commonly exempted items (e.g., food and clothing).

Exemption Administration. The Project’s goal is to reduce the burden of exemption administration by examining the feasibility of providing sellers with access to a database of exempt purchasers (where available) to verify an exemption certificate and with shifting responsibility for policing exemptions to the states where the seller accepts a properly completed certificate.

Tax Rate Administration. The Project is examining various methods for simplifying local sales and use tax rate structures as well as easing the burden for sellers when varying local option sales and use tax rates are utilized. It is also examining the ability of various software systems to deal with the complexity of local rates and the use of safe harbors to protect sellers making a good faith effort to determine applicable local tax rates.

Centralized Registration and Simplified Returns and Remittances. The Project is examining various means of simplifying the registration process through a uniform registration form or a centralized approach that would meet the needs of all states. The Project is also examining the potential for developing a uniform sales and use tax return and standardized remittance procedures. It is also examining the appropriate structure of due dates for returns and remittances.

Sourcing and Other Simplifications The Project is developing uniform rules by which all participating states would source sales, i.e., assign transactions to particular taxing jurisdictions that would have the authority to tax those transactions, to avoid multiple taxation.

Private Sector Commitment
Individuals, companies, or organizations from the private sector that wish to volunteer their time to assist the Work Groups do so at their own expense. Private sector participants are not paid for their services nor reimbursed for expenses incurred in conjunction with attendance at Work Group meetings or other Project-related activities.

How To Apply
Individuals, companies, and organizations interested in sharing their expertise with the Project and its Work Groups should complete an application. Applications must be completed and submitted no later than June 30, 2000. Information collected from these applications will be entered into a database that becomes the property of the Project and is intended for its sole use.

Questions regarding the Project or this database can be directed to the Project co-chairs: Ms. Diane L. Hardt (608-266-6798) or Mr. Charles D. Collins, Jr. (919-733-2151).