Ne007
September 11th, 2005, 07:41 PM
State officials plan to revive this fall their push to force Internet and mail-order vendors to collect sales taxes from their out-of-state customers.
On Oct. 1, 13 states will officially launch reformed systems that pledge compliance with the Streamlined Sales Tax Agreement, first devised in 2002 by a committee of state tax officials and billed as a way to make tax administration simpler and more uniform. Five more states have passed laws that, over the next two years, will bring them into compliance with the agreement.
Compliance with the system won't change the fact that tax collection remains voluntary for companies without a physical presence in the states where their orders originate, thanks to a 1992 Supreme Court decision.
But project backers say they hope the streamlined system, even with voluntary compliance, would attract participation from multistate companies that say the current tax system is too complicated.
"In some ways, this has absolutely nothing to do with the Internet," said project co-chair Scott Peterson of the South Dakota Department of Revenue. "What we're trying to do is simplify sales tax administration, whether that's for the downtown hardware store, 1-800-Flowers, or Walmart.com."
That means smoothing over differences among state tax procedures. For example, some states distinguish soft drinks from food when deciding tax rates on each, but the definition of soft drink varies widely, Peterson said. His project's solution? "Anything with less than 50 percent juice is considered a soft drink," he said. "Fifty percent or more, it's considered food."
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http://news.com.com/Renewing+the+push+to+collect+Net+taxes/2100-1028_3-5855343.html?tag=nefd.lede
On Oct. 1, 13 states will officially launch reformed systems that pledge compliance with the Streamlined Sales Tax Agreement, first devised in 2002 by a committee of state tax officials and billed as a way to make tax administration simpler and more uniform. Five more states have passed laws that, over the next two years, will bring them into compliance with the agreement.
Compliance with the system won't change the fact that tax collection remains voluntary for companies without a physical presence in the states where their orders originate, thanks to a 1992 Supreme Court decision.
But project backers say they hope the streamlined system, even with voluntary compliance, would attract participation from multistate companies that say the current tax system is too complicated.
"In some ways, this has absolutely nothing to do with the Internet," said project co-chair Scott Peterson of the South Dakota Department of Revenue. "What we're trying to do is simplify sales tax administration, whether that's for the downtown hardware store, 1-800-Flowers, or Walmart.com."
That means smoothing over differences among state tax procedures. For example, some states distinguish soft drinks from food when deciding tax rates on each, but the definition of soft drink varies widely, Peterson said. His project's solution? "Anything with less than 50 percent juice is considered a soft drink," he said. "Fifty percent or more, it's considered food."
Read the Rest Here:
http://news.com.com/Renewing+the+push+to+collect+Net+taxes/2100-1028_3-5855343.html?tag=nefd.lede