SLAC - Workgroups

Work Group Request Digital Codes

BAC proposal to expand the use of the “digital codes” look-through rule beyond specified digital products.

Work Group Request Economic Nexus Threshold Best Practices

Should SST develop best practices related to economic nexus thresholds?

5-23-2023 AM23007 passed  Disclosed Practice 8.1.d.i Remote Seller Transactional Economic Nexus Threshold, added Best Practice: States do not have a transactional economic nexus threshold.

SLAC Work Request Marijuana & Marijuana Products

Should the SSUTA be amended to adopt a definition of “Marijuana and Products Containing Marijuana”?  

Define “Marijuana and Products Containing Marijuana” for purposes of the exclusion in Section 106.

SLAC Work Request Sourcing Digital Products

Sections 305, 306, 307, 310 and 311

Issue: Proper calculation of the tax on sales of digital goods and liability relief if only a 5-digit zip code is obtained.  

SLAC Work Request

Section 310 and 311

Issue: Digital product issues such as sourcing. This will include discussion of the Federal Bill (Digital Goods Fairness Act).

SL23030 SLAC work Request - Menstrual Products Definition

Proposed name change and clarification of the definition of “feminine hygiene products”.

Result: AM23010 passed 11-6-2023 modifying definition of Menstrual Discharge Collection Devises and providing states an option to include or exclude a) period underwear; and/or b) all other clothing items marketed for menstrual discharge collection devises.

Work Group request Delivery Charges Toggle

Should an amendment to the Agreement be adopted to give states the option to retain, within the definition of “sales price,” delivery charges involving or relating to sales of electricity, natural gas, or artificial gas by a utility if the state elects to generally exclude delivery charges from the definition of “sales price” that are separately stated on the invoice, billing, or similar document given to the purchaser?   

Result:  AM23003 passed 5/23/2023 which amended the sales price definition to allow a toggle to exclude certain delivery charges.

Work Group Request - Voting

How is the denominator determined when calculating “the ¾ of the entire Governing Board” need for a particular vote to pass. Are sanctioned states included? Are Associate members included?

Result:  AM23006, AM23002, AM23001A01, BL23002A01 BL23001, RP23002 passed 5-23-2023

Work Group Request Sales Tax Holidays

Issue 1 - Should SST develop additional sales tax holiday definitions?
Gun Safety SL23007
School Clothing SL23008

Issue 2 - What is “sales tax holiday” versus a “regular” exemption with a sunset?

Result: AM23009A01 passed on November 7 2023 allowing a state that has a sales tax holiday on clothing to exclude baby receiving blankets and Defined, for purposes of a sales tax Holiday under Section 322, a temporary exemption is an exemption that is effective for a continuous period of less than or equal to three calendar months.

    

SLAC workgroup request:  Exemption Administration

Provide examples of how to administer the exemption certificate the when seller does not receive it at the time of sale or within 90 days of the sale but does obtain it prior to the time a member state requests it as substantiation for claiming an exemption.

Adding examples to Rule 317.1 to clarify when good faith can apply to the acceptance of an exemption certificate.

SLAC Work Request Candy Appendix N

Should App N be reviewed and revised to exclude the reference to specific product named items, as well as updating other information as appropriate?

Currently App N classifies specific items as either candy or not candy. An explanation is given for some items where clarification is helpful. Most of the explanations give the reason why the item is or is not candy. However, for the items identified as cereal bars w/flour and cereal bars w/out flour rather than a reason for the classification, examples of specific products are given. The specific products may have fallen within the types of items identified at the time App N was adopted, however, it has been brought to the attention of SST staff that some of the specific products listed as examples of cereal bars w/out flour in fact do have flour listed on the ingredient label.

Result:  RP22007 passed 12/22/2022 which amended the listing of items in Appendix N

SLAC Work Request: Sales Price Toggle for Manufacturer Coupons

The State and Local Advisory Council (SLAC) is establishing a new workgroup in response to a request from a member state to review the Agreement’s current treatment of manufacturer coupons and possible adoption of a toggle to the definition of “sales price” that would allow a state to exclude manufacturer coupons from the definition of “sales price”.  

Result: AM22001A03 passed 12/22/2022 allowing states to select a toggle to exclude from sales price all coupons issued by a manufacturer, supplier or distributor of a product(s) that entitle the purchaser a reduction in sales price and allowed by the seller who is reimbursed by the manufacturer, supplier or distributor. When the seller accepts such coupons, only the amount paid by the purchaser is included in the sales price.

SL21015 SLAC Work Request Personal Protective Equipment

SSUTA Section 107
SSUTA Section 322 Sales Tax Holidays
Appendix C - Definitions

Issue:  Should the SSUTA be amended to adopt a definition of “personal protective equipment” for purposes of sales tax holidays and/or allowing states to exclude these items from other defined terms contained in the SSUTA (i.e., clothing) permanently?

Result:  The workgroup concluded that action was not needed at the present time because no states are currently seeking permanent exemptions for personal protective equipment. The Governing Board was advised of this at its October 2021 meeting and no states or members of the public expressed concerns with the development of a whitepaper instead of an amendment to the Agreement.

SL21012 SLAC Work Request - Exemption Certificate 

The State and Local Advisory Council has received a work request to address a number of issues that have arisen surrounding unregistered sellers and foreign sellers, including what identification information is required on the exemption certificate for it to be a complete and valid certificate when claiming an entity, product or use based exemption.

Result: AM22003A02 Amended Appendix E to Add Disclosed Practice 9 Tax Administration Practices - Exemption Certificates to the Taxability Matrix - Passed 10/6/2022
RP22005A01 Amended Rule 317.1 Administration of Exemptions passed 10/6/2022

SL21011 SLAC Work Request - Prepared Food

The State and Local Advisory Council has received a work request to develop a toggle in the prepared food definition to allow states to either tax or exempt items that would become prepared food if a seller exceeds the 75% test and makes utensils available.

Result:   AM21006 (passed 10-5-2021) Amended Part II of Appendix C to allow states to either tax or exempt items that would become prepared food if a seller exceeds the 75% test and makes utensils available.  Incorporated the 75% test established in Interpretive Opinion 2006-04 into the definition of “Prepared food”.

 

The State and Local Advisory Council has received a work request form (see attached) to develop further clarification for "not defined" terms in Appendix L and Disclosed Practice 7.

Interpretation Request sent to SLAC by CRIC and approved by Governing Board 10-15-2020

Result:
AM21002 Amend Appendix E, Disclosed Practice 7 - Healthcare  passed 5-20-21
AM21003 Amend Section 327 - Library of Definitions passed 5-20-21
RP21002 Amend Appendix L - Healthcare Item List  passed 5-20-21

Work Request SL20015

Result:  AM20003A02 Amended Part II of Appendix C to allow states exclude certain products from the definition of "candy."   Passed 12-18-2020
RP21001 Amended Rule 327.8 Candy  Passed 5-20-2021
RP21003 Amended Appendix N Classification of Food and Food Ingredients  Passed 5-20-2021

Work Request SL20006

Proposed Amendment Rule 810.3  SL20012A01
Result: RP20005 amended Rule 810.3 passed 10-15-2020

August 2019

SLAC Work Request SL19018

Issue: Disclosure of Marketplace Facilitators laws, including:

* Certification of collection on behalf of marketplace sellers
* Exemption Certificates
* Survey Results of States laws
Working on potential disclosed practices for Marketplace facilitators, sellers and remote sellers.

Result: AM21005A01 Amended Appendix E to add Disclosed Practice 8 - Remote & Marketplace Sellers/Facilitators    Passed 5-20-2021

August 2019

Issue:  How to Identify barriers to participating in SSTGB and benefits for non-member states to participate.

Result:  MC19008 and MC19009 Resolutions approved by Governing Board 12/20/2019

May 2019

Work Request

Model Breast Pump Sales Tax Exemption Legislation 

Parity for Pumps Member State Impact

Section 104 Defined Terms; Section 209 Product-Based Exemption; Section 316 Enactment of Exemptions; Appendix C Library of Definitions

Issue:   Should the SSUTA adopt a product-based definition of breast pumps, breast pump supplies, breast pump kits, and repair services that can be used where desired by members states? 

Result: AM19003 Added definition of Breast Pumps, Breast Pump Collection and Storage Supplies and Breast Pump Kits to SSUTA - Governing Board approved 12/20/2019

February 2019

SLAC Work Request

Section 209, 310, and 311

Issue: Sourcing of Services.  This will continue the discussion of how services are sourced resulting in the development of an interpretive rule or tax administration practices.

Result: Per discussion no action required.

February 2019

SLAC Work Request    SLAC Work Request (accepting multiple returns)

Section 308.C. Uniform Tax Returns - Simplified Electronic Return (SER)

Issue:  States imposes taxes other than sales tax that are currently reported on the state sales tax returns.  The SER only allows for reporting of sales tax, potentially resulting in sellers filing filing multiple returns each reporting period.  Should the SER be expanded to allow reporting of taxes, other than sales tax.  Discussion will include potential changes to the SER to accommodate other reporting requirements by the states.

Result: Referred to Certification Committee May 6, 2019

February 2019

SLAC Work Request

Section 401.D. Seller Participation

Issue: Can or should a state be able to use a seller's registration through SST to give notification to sellers of possible other tax responsibilities?

Result: AM19002 Amendment to Section 401.3 and Rule RP19001 Approved by Governing Board 12/20/2019