United States

Multistate: Streamlined Sales Tax Update

Apr 04, 2016
From KPMG TaxWatch

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The Streamlined Sales Tax Governing Board’s State and Local Advisory Council (referred to as “SLAC”) recently met in Little Rock, Arkansas. The purpose of the meeting was to discuss sales tax issues affecting the states and the business community. The meeting, attended by state taxing authority employees and tax professionals employed by major retailers, as well as others in the state and local tax community, began with an update on Federal legislation regarding remote sellers. Although it does not appear that any of the federal bills are making great strides, the SLAC continues to stand behind the Remote Transaction Parity Act. The Act currently has 62 cosponsors, and the SLAC urged committee members to speak with lawmakers about supporting the Act. In the absence of federal legislation, the states have individually put forth over 40 bills aimed at overturning the physical presence rule in Quill, adopting expanded nexus standards for remote sellers, or adopting use tax reporting requirements.

One of the major discussion topics was post-transaction issues. A 14-question survey, recently sent from the SLAC to member states, reflects the current practices of the states when it comes to customer returns, refunds, and exchanges, as well as restocking and statute of limitations issues. A matrix with the states’ responses can be found on the Streamlined Governing Board’s website. The hope of the group is that these post-transaction items may be added to state taxability matrices as disclosed practices. Other issues discussed at the meeting included caps and thresholds as they relate to state-provided clothing exemptions, agent authorization forms, and potential amendments to the sourcing of digital products. Please stay tuned TWIST for information on future Streamlined Sales Tax meetings.

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.