30-day Public Comment Period Regarding Consideration of Imposing Sanctions on States Found to Not be in Compliance with the Streamlined Sales and Use Tax Agreement

Jan 17, 2023

Pursuant to Section 809 of the Streamlined Sales and Use Tax Agreement (Agreement) and Streamlined Sales Tax Governing Board Rule 809, this message will serve as official notice of the commencement of the 30-day public comment period regarding the consideration of imposing sanctions on Georgia and Nevada. The Streamlined Sales Tax Governing Board (SSTGB) determined that Georgia and Nevada were not in substantial compliance with the requirements of the Agreement. Interested persons may submit written comments for the SSTGB’s Executive Committee to consider regarding any possible sanctions on these states. All comments must be submitted no later than 5 pm central on Thursday, February 16, 2023. All comments should be addressed to the Streamlined Sales Tax Governing Board - Executive Committee. Comments may either be emailed to Craig Johnson, Executive Director at craig.johnson@sstgb.org or mailed to Streamlined Sales Tax Governing Board, Inc., 100 Majestic Drive, Suite 400, Westby, WI 54667. All public comments received will be posted to the SSTGB website.

The specific Sections of the Agreement and issue(s) on which the SSTGB determined these states were not in substantial compliance are as follows:


  • Section 317.C. – Administration of Exemptions – The Section provides in part that “Each state shall relieve a seller of the tax otherwise applicable if the seller obtains a fully completed exemption certificate or captures the relevant data elements required under the Agreement within 90 days subsequent to the date of sale...” Rather than just providing this liability relief to sellers who obtain a fully completed exemption certificate within 90 days subsequent to the sale, Georgia imposes a requirement under Section 48-8-38 that the exemption certificates must also be accepted in good faith. Although these additional requirements may be placed on a seller if the seller did not obtain an exemption certificate within 90 days subsequent to the sale, they cannot be placed on the seller if the seller obtained the fully completed exemption certificate within 90 days subsequent to the sale.

  • Section 323.A. – Caps and Thresholds – Under the Agreement, caps and thresholds are not allowable “…unless the member state assumes the administrative responsibility in a manner that places no additional burden on the retailer.”  Georgia enacted legislation that places a cap of $35,000 in tax on boat repairs.

  • Section 318.C.3.c and d. – Uniform Tax Returns – Under the Agreement, effective January 1, 2011 a state must allow Model 4 sellers to file the simplified electronic return (SER) and effective January 1, 2013 a state must allow all sellers, including those not registered under the Agreement to file an SER. Georgia currently only accepts SERs from Model 1 Sellers.

  • Section 308 – The legislature extended the exemption for food to an equalized homestead option sales tax if such local tax is passed by referendum. This provision is intended for one county. Food is not exempted from other local sales taxes. A referendum was passed and then this provision became effective in DeKalb County on April 1, 2018.


  • Section 322 – Sales Tax Holidays – Under the Agreement, Section 322 provides in part that “A. If a member state allows for temporary exemption periods, commonly referred to as sales tax holidays, the member state shall: 1. Not apply an exemption unless the items to be exempted are specifically defined in Part II or Part III(B) of the Library of Definitions and the exemptions are uniformly applied to state and local sales and use taxes. 2. Provide notice of the exemption period at least sixty days’ prior to the first day of the calendar month in which the exemption period will begin. 3. Not apply an entity or use based exemption to items except a member state may limit a product based exemption to items purchased for personal or non-business use. 4. Not require a seller to obtain an exemption certificate or other certification from a purchaser for items to be exempted during a sales tax holiday.” 

    The Nevada legislature in 2021 expanded the entity-based exemption for sales to qualified members of the Nevada National Guard in SB440. The legislation provides for a new temporary sales tax exemption for all tangible personal property every year through 2031 on “Nevada Day” and the weekend immediately following the holiday. The exemption only applies to qualified Nevada National Guard members, thereby making it an entity-based exemption which is prohibited under SSUTA Section 322(A)(4).

The Streamlined Sales Tax Governing Board’s Executive Committee will hold a public meeting no sooner than 10 days after the public comment period closes to consider the comments received and develop a recommendation regarding any possible sanctions that may be imposed on Georgia and Nevada. During this meeting, there will be an opportunity for public comments as well as an opportunity for Georgia and Nevada to provide comments.

If you have any questions regarding this, please contact me.

Craig Johnson
Executive Director
Streamlined Sales Tax Governing Board, Inc.
100 Majestic Drive, Suite 400
Westby, WI  54667
(o) (608) 634-6160
(m) (608) 632-0521