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)
“People buy their necessities in shops and have to pay dearly for them because they have to assist in paying for what is also on sale there but only rarely finds purchasers: the luxury and amusement goods. So it is that luxury continually imposes a tax on the simple people who have to do without it.”
—Friedrich Nietzsche (1844–1900)
“No one can doubt, that the convention for the distinction of property, and for the stability of possession, is of all circumstances the most necessary to the establishment of human society, and that after the agreement for the fixing and observing of this rule, there remains little or nothing to be done towards settling a perfect harmony and concord.”
—David Hume (1711–1776)