SST Governing Board: 8 States Out of Compliance
- Dec 23, 2011 | Will Frei
The SSUTA seeks to "simplify and modernize" state sales and use tax administration to reduce the complexities of sales tax compliance. Yet it seems that simplifying sales tax administration can prove complicated. Based on the recommendations of the Compliance Review and Interpretations Committee (CRIC), the Governing Board found Indiana, Michigan, Minnesota, Nevada, New Jersey, Utah, Vermont and Wyoming out of compliance.
The states in question have one legislative session to address their non-compliance before the board considers sanctions. In response, most states have already taken measures to remedy their shortcomings, drafting "remedial legislation" that their legislatures will consider in the new year.
For instance, Vermont taxes digital products whether or not they "are sold with the rights of use less than permanent or conditions on continued payment." The SST board found that Vermont did not make this explicit in their legislation, as required by the SSUTA. Vermont responded by agreeing that they needed "clarifying legislation."
Currently twenty-four states have adopted the measures in the Streamlined Sales and Use Tax Agreement, which means that 33% of those states have been found out of compliance with the agreement. As new technology and legislation emerges, it remains to be seen whether this percentage rises or falls.