Streamline Sales and Use Tax Agreement
The Streamline Sales and Use Tax Agreement (SSUTA) focuses on four major requirements for simplification of state and local tax codes: 1) state level administration, 2) uniform tax base, 3) simplified tax rates, and 4) uniform sales sourcing rules.
State Level Administration Under SSUTA, sales taxes will be remitted to a single state agency and business will no longer be required to submit multiple tax returns for each state they are conducting business.
Uniform Tax Base This would require each state to make their jurisdictions use the same tax base, meaning the same goods and services would be taxed or exempt the same way within each state. Each state would retain the choice whether an item is taxable and at what rate.
Simplified Tax Rates This would require the same tax rates be applied across the states tax jurisdictions. There can be an exception rate for food and drugs.
Uniform Sales Sourcing Rules For in-state sales, the seller would be expected to collect the tax rate for the vendor location. This is defined as "origin" sourcing. For sales into a state from an remote seller, the vendor would collect the applicable state wide rate for the destination state. This is defined as "destination" sourcing.
Read more about this topic: Streamlined Sales Tax Project
Famous quotes containing the words sales, tax and/or agreement:
“Make friends with the angels, who though invisible are always with you.... Often invoke them, constantly praise them, and make good use of their help and assistance in all your temporal and spiritual affairs.”
—St. Francis De Sales (1567–1622)
“I have no doubt that it was a principle they fought for, as much as our ancestors, and not to avoid a three-penny tax on their tea; and the results of this battle will be as important and memorable to those whom it concerns as those of the battle of Bunker Hill, at least.”
—Henry David Thoreau (1817–1862)
“Culture is the tacit agreement to let the means of subsistence disappear behind the purpose of existence. Civilization is the subordination of the latter to the former.”
—Karl Kraus (1874–1936)