STREAMLINED SALES TAX PROJECT
Co-Chairs:
Charles D. Collins, Jr., North Carolina Department
of Revenue
Diane L. Hardt, Wisconsin Department of Revenue
Contracts Awarded for Pilot Program
(Washington, DC). Contracts have been awarded to three companies to be certified service providers (CSP) in a pilot project to be launched this fall by the Streamlined Sales Tax Project, according to representatives of the Project. The companies awarded contracts are:
The contracts were awarded as a result of a Request for Proposal (RFP) issued in June by North Carolina. The contracts were awarded by North Carolina, and the other three pilot states--Kansas, Michigan, and Wisconsin--will adopt the contracts. The purpose of the pilot is to test one of the key elements of the proposed Streamlined Sales Tax System--the use of a CSP to perform the sales tax administration functions of a retailer. Use of a CSP is anticipated to relieve the retailer of much of the compliance burden of sales and use tax administration. Under current law, sales tax administration functions include determination and calculation of the amount of tax due, collection of the tax, remittance of the tax, and filing reports of the tax.
Simplification measures, such as uniform definitions and tax rates, are still under discussion and will not be a part of this pilot project. In addition to the four states participating in the pilot, it is anticipated that numerous retailers engaged in both traditional and electronic commerce transactions will participate. The pilot project is expected to run one year.
“We are pleased to award the contracts and are anxious to work with these companies to conduct the pilot project,” commented Diane L. Hardt, Wisconsin Department of Revenue and a co-chair of the Project. The companies selected were chosen from nine vendors who submitted proposals to participate in the pilot. “We were very encouraged by the number and caliber of the companies responding to the RFP,” commented Charles D. Collins, Jr., North Carolina Department of Revenue and a co-chair of the Project, “and are very excited about working with firms selected for the pilot.”
“We are really excited about the opportunity to use our proven funds management technology to simplify the tax collection process for merchants of every size,” states Leon Schwartz, director of planning and analysis for Pitney Bowes.
“The pilot states will have the ability to integrate the sales tax calculation process into the order processing system of retailers without having an adverse effect on the sales transaction,” commented Mike Blandina, president of esalestax.com.
“TAXWARE International is very pleased to have been awarded pilot system contracts and we are looking forward to making this revolutionary tax concept a huge success,” Dan Sullivan, the company’s chief executive officer, said.
States participating in the Project are currently meeting once a month to develop the components of the new streamlined sales tax collection system. Proposals addressing Phase I of the system will be posted to the Project’s website in mid-September and will be the subject of a public hearing on September 29. The Project expects to approve model legislation based on the proposals by the end of the year with state legislatures considering model legislation in early 2001. However, work will continue on many phases of the new system well into next year.
Thirty-nine states are currently participating in the Project. Numerous representatives of local government are also having input into the discussions. In addition, the Project is consulting with numerous representatives from industries in the private sector that are impacted by sales tax laws and requirements.