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April 5, 2000 Washington, DC
States Proceeding With Streamlined Sales Tax Project
Co-Chairs
Charles D. Collins, Jr., North Carolina Department of Revenue
Diane L. Hardt, Wisconsin Department of Revenue
Contact:
Ellen B. Marshall
Palumbo & Cerrell Consulting
202-466-9000
(April 5, Washington, DC) Recognizing the need for
simplification and the long-range implications to existing tax bases, 26 states
are continuing concentrated discussions aimed at formulating a new sales and
use tax system.
"States have accepted the challenge to design,
test, and implement a streamlined sales tax system for the 21 st
century," stated Diane L. Hardt, Wisconsin Department of Revenue,
a co-chair of the project. "We agree that the current sales and use tax
system is not equipped to address the needs of the existing and new electronic
economies. The new system under development will protect the privacy of consumer
transactions, greatly simplify definitions, tax rates, and tax bases, and incorporate
technology into the collection process."
The Streamlined Sales Tax Project is an effort created
by and comprised of the governments of the States. 26 states are currently supporting
the project, most having already demonstrated their commitment through passage
of legislation or issuance of an executive order authorizing their participation.
During the March 30-31 discussions in Denver, Colorado,
the project took action on the following issues:
- Appointed Ms. Hardt and Charles D. Collins, Jr.,
North Carolina Department of Revenue, as co-chairs of the project;
- Approved the Project Structure and Operating Rules;
- Established the following Work Groups to address
various components of the system;
- Technology, Audit, Privacy Issues, and Paying
for the System
- Tax Base Uniformity and Exemption Administration
- Tax Rate and Registration, Returns and Other
Remittances
- Sourcing and Other Simplification Issues
- Discussed and approved a timetable
for development of a pilot project.
"The states are designing
a new, simpler sales and use tax system that increasesuniformity
and maintains some state flexibility," commented co-chair Charles Collins.
"The system also incorporates the highest degree
of security and privacy. This newsystem will ease
consumer concerns regarding tax collection during online purchasing
The project anticipates seeking
input and technical assistance from both the public andprivate
sector to address numerous issues within the Work Groups. A public commentperiod is also provided at each of the project meetings
to allow interested parties toaddress issues relevant
to the project.
The project is establishing
a website to provide information regarding its ongoingactivities
and upcoming meetings. The project’s website address is www.streamlinedsalestax.org.
The project will hold its next meeting
on April 26-27, 2000 in St. Louis, Missouri.
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