Californian Officials Vote For Closer Association With SSTP

by Mike Godfrey, Tax-News.com, Washington

31 March 2003

California moved a step closer to joining the streamlined sales tax project (SSTP) last week when officials from the Board of Equalisation voted 3-2 to increase the state's association with the project.

This has brought California in line with 40 other states who are actively involved in lobbying the federal government to enact an online sales tax.

The state has also passed a bill that will strengthen the collection of taxes from so-called 'bricks and mortar' online and mail order retailers - that is, those with a physical presence within the state. Another bill recently passed allows California to vote on amendments to the SSTP, as well as proposing new measures.

The State Controller, Steve Wesley, who voted for the move, claimed that California lost out on $1 billion of uncollected tax revenues from online purchases in 2001. He also wants to see the public educated better on the issue, especially in the area of a possible "use tax" on internet purchases bought out of state.

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