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.

The Taxability Matrix has two sections.

 

Section 1. "Library of Definitions" 

Each item listed in Section 1. "Library of Definitions" Each item listed in this section 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, Library of 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 is 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 Section 1.

 

Section 2. "Tax Administration Practices"

Section 2. "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 contained in Section 2.

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 Section 1 or 2 of the state's taxability matrix is submitted to the governing board, provided the seller or CSP relied on the prior version of the taxability matrix. 

 

 

 

Links

 

Taxability Matrix

Taxability Matrix Updates
(Click on date to see the most current notices)

User Guide