Taxability Matrix


The Taxability Matrix identifies each of the definitions and tax administration practices adopted by the Governing Board and which each state must follow.  The state indicates the tax treatment of each of the items identified in the matrix along with a reference to its applicable law, rule, regulation or written policy.  A state can also enter any comments that may be helpful to users in complying with their laws.

As of June 2121 the Taxability Matrix was separated into two documents: Taxability Matrix: Library of Definitions (previously Section 1) and Taxability Matrix: Tax Administration Practices (previously Section 2).

 

Taxability Matrix: Library of Definitions

Each item listed in the Taxability Matrix: Library of Definitions Section A (Administrative Definitions), Section B (Sales Tax Holidays) and Section C (Product Definitions) is defined in the Library of Definitions in the Streamlined Sales and Use Tax Agreement (SSUTA). Refer to Appendix C of the SSUTA for each definition.

Section A, Administrative Definitions, indicates if the state has adopted the definition provided in the SSUTA and if the item is included in or excluded from the sales price.

Sections B, Sales Tax Holidays, and C, Product Definitions, indicate if the state has adopted the definition provided in the SSUTA and whether the item is taxable or exempt.

Exceptions to the definitions or further explanation of the tax application are provided in the comments column.

Sellers and certified service providers are relieved from tax liability to the member state and its local jurisdictions for having charged and collected the incorrect amount of sales and use tax resulting from the seller or certified service provider relying on erroneous data provided by the member state relative to treatment of the terms defined in the Library of Definitions.

 

Taxability Matrix:  Tax Administration Practices

Each Tax Administration Practice is in the Library of Tax Administration Practices in the Streamlined Sales and Use Tax Agreement (SSUTA).  Refer to Appendix E of the SSUTA for each Tax Administration Practice Explanation.

The Taxability Matrix: Tax Administration Practices indicates which administrative practices the state follows and provides an explanation of the state's practice if it does not follow a listed practice.

To the extent possible under each state's laws, sellers and CSPs are relieved from tax liability to the member state and its local jurisdictions for having charged and collected the incorrect amount of sales and use tax resulting from the seller or certified service provider relying on erroneous data provided by the member state relative to the tax administration practices.

 

To the extent possible under each state's laws, sellers and CSPs are also relieved from tax liability to the member state and its local jurisdictions for having charged and collected the incorrect amount of sales and use tax until the first day of the calendar month that is at least 30 days after notice of a change to the states "Taxability Matrix: Library of Definitions" or the states "Taxability Matrix: Tax Administration Practices" is submitted to the governing board, provided the seller or CSP relied on the prior version of the taxability matrix.