June 1, 2000 Washington, DC

Retailers and Legislator Urge States to Simplify the Sales Tax System; Pilot Project Approved

(June 1, Washington, DC). In comments before representatives of 30 states, advocates for national retailers and a state legislator strongly urged states to push ahead in their efforts to modernize and simplify the sales tax system. The remarks came during testimony on May 25 in Chicago, Illinois at a meeting of the Streamlined Sales Tax Project.

Maureen Riehl, Vice President of State and Industry Relations for the National Retail Federation (NRF), recognized the daunting task the Project has undertaken. Consistent with the goals of the Project, the NRF supports a level playing field for all sellers on the collection of sales taxes. Riehl also offered her organization’s expertise to the Project as it begins drafting model legislation to implement a simplified sales tax system.

State Senator Steven Rauschenberger (R-IL) implored Project members to move quickly and purposely. "Congress doesn’t believe we (the states) can simplify," Rauschenberger said referring to Congress’ recent action on Internet tax issues. "This issue is going to flash and pass in the next 18 to 24 months," Rauschenberger continued stressing the need for the Project to move expeditiously on its implementation program.

Also during the meeting, participating states approved a motion to authorize formation and implementation of a pilot project. The pilot project will commence in the Fall 2000 and will test the capabilities of tax collection software under existing laws. "We are confident in the capabilities of existing tax collection software," stated Diane L. Hardt, a co-chair of the Project. "Launching a short-term, contained pilot project will allow us to test various software products and their applications under existing law. Although the proposed streamlined sales tax system will not contain the complexities of the current system, we feel it is necessary and prudent to test software under the toughest circumstances to insure its capabilities," Hardt concluded.

Michigan, North Carolina, Wisconsin and Kansas have confirmed their participation in the pilot project. Other states may choose to join at a later date. A formal Request for Proposal will be issued in mid-June by North Carolina for software companies interested in testing tax collection software in the pilot project. Software vendors wanting to receive notice should register online with Vendor Link NC at www.ips.state.nc.us/ips/vendor/ and register for Data Processing Services and Software, 920 00. The Request for Proposal will also be posted on the Project website at www.streamlinedsalestax.org.

In other action, the Project announced that it would continue to seek the input of retailers, technology companies, and others with expertise in the issues that it is considering. To facilitate that input, the Project will compile a database of companies and individuals interested in providing the Project with technical assistance in a number of areas. "Our discussions with software companies, retailers, and legislators have been invaluable,"stated Charles D. Collins, Jr., a project co-chair. "Increasingly, the Project Work Groups need the technical assistance of the people in the trenches—those who are involved with sales and use tax collection on a daily basis. We intend to use this database as a means of accessing the expertise of these people and incorporating their knowledge into the process." The Project will be posting an application on its website that can be completed by those individuals who are interested in becoming more involved in the Project’s efforts.

The next meeting of the Streamlined Sales Tax Project will be on June 28-30, 2000 in Chicago, Illinois.

Home | Press Releases