May 2, 2000 Washington, DC
States Focus on Technology and Privacy Issues in New Sales Tax System

Co-Chairs
Charles D. Collins, Jr., North Carolina Department of Revenue
Diane L. Hardt, Wisconsin Department of Revenue

Contact:
Ellen B. Marshall
202-466-9000

FOR IMMEDIATE RELEASE

(May 2, Washington, DC) State representatives to the Streamlined Sales Tax Project focused on technology and taxpayer privacy issues in their discussions at the recent meeting in St. Louis, Missouri on April 26-27. The project is an effort created by the governments of the States with its aim being the development of a new, simpler sales tax system that meets the needs of the new and existing economies.

"The rapid growth of the Internet and e-commerce teaches us that the traditional tax collection systems we have used for decades simply will not work efficiently in the new economy," stated Diane L. Hardt, Wisconsin Department of Revenue, a co-chair of the project. "We need to use the new economy as a teacher for how government can, and should, adapt itself to the changing pace of the business community. We know that the incorporation of technology into the tax collection process is a vital element in the development of any new system. This technology can be harnessed and applied in a cost-effective way to radically streamline the tax collection process for vendors while increasing the accuracy of sales tax collections."

At the St. Louis meeting, states heard from a number of technology companies that currently operate or have developed software products for tax collection purposes. The primary focus of these discussions was to ascertain the current capabilities and accuracy of tax collection software as well as to address how current software could accommodate the proposed new system. Working groups in the project also continued discussions toward providing greater uniformity in definitions.

States also focused on the impact the new system will have on the privacy of taxpayer transactions. "Protecting the confidentiality of taxpayer information is a paramount concern to this project," commented the project’s other co-chair, Charles D. Collins, Jr., North Carolina Department of Revenue. "The states are demanding that the highest degree of privacy protections be incorporated into this project." The next meeting of the project will take place in Chicago, Illinois on May 25-26, 2000.

A public comment period is provided at each of the project meetings at which time members of the general public may address the project on relevant issues. Individuals and companies interested in learning more about the upcoming meeting and requirements to participate can obtain information from the project website at www.streamlinedsalestax.org.