April 5, 2000 Washington, DC

Co-Chairs:
Charles D. Collins, Jr., North Carolina Department of Revenue
Diane L. Hardt, Wisconsin Department of Revenue

(April 5, Washington, DC) Recognizing the need for simplification and the long-range implications to existing tax bases, 26 states are continuing concentrated discussions aimed at formulating a new sales and use tax system.

"States have accepted the challenge to design, test, and implement a streamlined sales tax system for the 21 st century," stated Diane L. Hardt, Wisconsin Department of Revenue, a co-chair of the project. "We agree that the current sales and use tax system is not equipped to address the needs of the existing and new electronic economies. The new system under development will protect the privacy of consumer transactions, greatly simplify definitions, tax rates, and tax bases, and incorporate technology into the collection process."

The Streamlined Sales Tax Project is an effort created by and comprised of the governments of the States. 26 states are currently supporting the project, most having already demonstrated their commitment through passage of legislation or issuance of an executive order authorizing their participation.

During the March 30-31 discussions in Denver, Colorado, the project took action on the following issues:

• Appointed Ms. Hardt and Charles D. Collins, Jr., North Carolina Department of Revenue, as co-chairs of the project;
• Approved the Project Structure and Operating Rules;
• Established the following Work Groups to address various components of the system;
  1. Technology, Audit, Privacy Issues, and Paying for the System
  2. Tax Base Uniformity and Exemption Administration
  3. Tax Rate and Registration, Returns and Other Remittances
  4. Sourcing and Other Simplification Issues
• Discussed and approved a timetable for development of a pilot project.

"The states are designing a new, simpler sales and use tax system that increases uniformity and maintains some state flexibility," commented co-chair Charles Collins. "The system also incorporates the highest degree of security and privacy. This new system will ease consumer concerns regarding tax collection during online purchasing and will streamline the tax collection process for both online and brick and mortar businesses."

The project anticipates seeking input and technical assistance from both the public and private sector to address numerous issues within the Work Groups. A public comment period is also provided at each of the project meetings to allow interested parties to address issues relevant to the project.

The project is establishing a website to provide information regarding its ongoing activities and upcoming meetings. The project’s website address is www.streamlinedsalestax.org.

The project will hold its next meeting on April 26-27, 2000 in St. Louis, Missouri.

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