“Property” is the Average Value of the Seller’s real property and tangible personal property owned or rented by the Seller. Property owned by the Seller is valued at its original cost basis. Property rented by the Seller is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the Seller less any annual rental rate received by the Seller from sub-rentals. The “Average Value” of Property shall be determined by averaging the values at the beginning and end of the 12-month period immediately preceding the date of registration with the Streamlined State.
“Payroll” is the total amount paid by the Seller for Compensation during the 12-month period immediately preceding the date of registration with the Streamlined State. “Compensation” means wages, salaries, commissions and any other form of remuneration paid to employees and defined as gross income under Internal Revenue Code §61. Compensation is paid in a Streamlined State if (1) the individual’s service is performed entirely within the Streamlined State, (2) the individual’s service is performed both within and outside the Streamlined State, but the service performed outside the Streamlined State is incidental to the individual’s service within the Streamlined State, or (3) some of the service is performed in the Streamlined State and (a) the base of operations, or if there is no base of operations, the place from which the service is directed or controlled, is in the Streamlined State, or (b) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual’s residence is in the Streamlined State.
The “Volunteer Seller” definition is only for purposes of determining compensation for the CSP.
This definition does not determine if a Seller has a legal obligation to collect sales or use taxes in any Streamlined State.