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)
“Parents are used to being made to feel guilty about...their contribution to the population problem, the school tax burden, and declining test scores. They expect to be blamed by teachers and psychologists, if not by police. And they will be blamed by the children themselves. It is hardy a wonder, then, that they withdraw into what used to be called “permissiveness” but is really neglect.”
—C. John Sommerville (20th century)
“Since the French Revolution Englishmen are all intermeasurable one by another, certainly a happy state of agreement to which I for one do not agree.”
—William Blake (1757–1827)