US Internet Sales Tax Rules Get The Thumbs Up
The Streamlined Sales
Tax Project (SSTP) has voted to adopt rules to make it easier
for US states to collect online sales taxes, according to its
co-chairman Charles Collins. The next step is for proposals to
go to the National Governors Association in Washington and to
the National Conference of State Legislatures for consideration.
The draft legislation would have to be adopted by individual state
legislatures to become law. The Project has support
in about 40 states. National retailing associations would also
like to see SSTP simplifications become law. At least five states
must enact legislation incorporating the SSTP rules before they
become effective. Leaders of the SSTP are confident that they
will get these five states in 2001. If passed, the legislation
would simplify the complex and different sales tax rules now used
by the states to collect taxes on items sold online and in catalogues.
Under current laws
in the US, retailers do not collect sales tax on a purchase unless
they have a physical presence in the state where the buyer is
located. And although the buyer still owes a "use tax"
- the equivalent of a sales tax - most people do not pay it. State
officials say they stand to lose billions in tax revenue as online
sales increase. A copy of the legislation
can be found on the Streamlined Sales Tax Project website at www.geocities.com/streamlined2000.
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