There is some good information above and I would encourage everyone to learn more about the Streamlined Sales Tax. (www.streamlinedsalestax.org) However, there are many things to consider with regard to Streamlined Sales Tax.

The federal government hasn't blessed or "finalized" any Streamlined Legislation...thankfully. Congress has been reluctant to ignore the Quill decision by the U.S. Supreme Court that protects businesses from the complexities of sales tax collection and compliance in states where the business does not have a physical presence. There remain significant issues (small business exceptions, telecommunications and sourcing) at the Federal level that many groups are working to resolve.

While it is true that over 40 states are participating in discussions on the issue, only a little over one dozen states have fully enacted Streamlined Sales Tax legislation. A few others are close to full compliance. However, many large states representing an overwhelming percentage of the U.S. economy are no where near adoption of the current Streamlined Sales Tax Agreement. California has basically withdrawn from the process. Several unresolved issues will likely prevent Texas from joining. (www.window.state.tx.us/comptrol/fnotes/fn0606/stalemate.html ) Illinois, New York and Florida all face significant hurdles before they will enact SST legislation.

Companies like Avalara have created a fabulous product that can make sales tax compliance easier for many businesses. However, the cost of integration and operation of the software in many states is still unresolved.

The original goal of the Streamlined Sales Tax Agreement was simplified compliance and administration. I would encourage everyone to thoroughly examine the current Streamlined Agreement and/or legislation in your state and see for yourself if this will reduce your sales tax compliance cost or burden.

John Kroll
Coalition for Appropriate Sales Tax Law Enactment (CASTLE)
512-236-1158

Makes us feel a bit smug in Montana where we have no state sales tax, at least until we get our property tax bills or add up the income taxes. But we do avoid the overhead expenses of government reporting and now, AvaTax.

Why are the states making this so complicated? Just change the rules so that internet sales tax is collected at the location of the transaction, not the location of the customer. That way there is only one sales tax return to fill out for businesses, the states get the much needed revenue, and they can enact it themselves without waiting for the other states. Plus, PayPal and existing shopping cart software would support such a scheme now. There is a much better way than what they are proposing.