regarding
OCTOBER 26, 2000 PUBLIC HEARING

FOR IMMEDIATE RELEASE
October 6, 2000

Charles D. Collins, Jr. (North Carolina Department of Revenue) and Diane L. Hardt (Wisconsin Department of Revenue), co-chairs of the Streamlined Sales Tax Project, today announced that the Project would hold its second public hearing on Project proposals to streamline and simplify the current sales tax system. The hearing will take place at 10:00 a.m. on October 26, 2000 at the Ramada Plaza Hotel O’Hare, 6600 N. Mannheim Road, Rosemont, Illinois.

The current state and local sales tax system has become outmoded to deal with transactions occurring in the existing and electronic commerce economies. In response to requests from the business community for simplification of the sales tax and to incorporate the use of technology in the administration and collection of the tax, states formed the Streamlined Sales Tax Project in March 2000. The goal of the Project is to design and implement a simplified sales tax collection system that can be used by traditional brick and mortar vendors and vendors involved in e-commerce. 39 states are currently involved in the Project.

Designing and implementing a new sales tax system is expected to take several years. However, the Project hopes to complete a large portion of its work by January 2001. Elements that will be a part of the first phase include a set of uniform definitions, uniform rules for sourcing, rounding and bad debts, modernized exemption administration and other simplification features. Model legislation will be drafted incorporating these elements to enable states to adopt the system and will be presented to state legislatures for consideration. Work is expected to continue on additional elements through 2001.

The October 26, 2000 hearing is the second public hearing conducted by the Project, the first being held on September 29. The first hearing focused on proposals that addressed issues relating to a methodology for sourcing transactions, exemption administration, and technology that will be incorporated into the new system.

Among the proposals that will be examined at the October 26 hearing will be a set of uniform definitions. Comments will also be allowed on proposals presented at the September 29 hearing.

"We are pleased with the statements of support for the Project," stated Ms. Hardt. "The comments and recommendations we received are very helpful and are currently being considered by the Project."

The Project is currently finalizing proposals for consideration at the October 26 hearing. These proposals will be posted to the Project website (www.streamlinedsalestax.org) on October 16. All members of the public are invited to provide either oral or written comments on these proposals in accordance with the guidelines specified below.

"The business community and the states have worked cooperatively to allow us to formulate elements of a streamlined sales tax system that reduces the burdens on vendors that are present in the current system," commented Mr. Collins. "We’ve come a long way—with substantial work yet to be done. But we are confident that this joint effort will allow us to meet our goals."

Individuals wishing to testify in person at the hearing must notify the Project co-chairs no later than Friday, October 20, 2000. Notification should be in writing (no email notifications accepted) and directed to:

Please note on the outside of the envelope: Request to Testify

Oral testimony will be limited to no more than five minutes in length. Additionally, individuals and organizations testifying at the hearing are asked to provide a copy of their testimony to the Project co-chairs and the Project’s communications liaison by October 24, 2000. A copy of the testimony can be provided in hard-copy form to the addresses listed above or transmitted electronically via email. Email addresses are as follows:

charles.collins@ncmail.net, dhardt@dor.state.wi.us, ellen_marshall@hotmail.com

Any person or organization wishing to submit a written statement for the printed record of the hearing should submit five (5) single-spaced copies of their statement, along with an IBM compatible 3.5-inch diskette Word format, with their name, organization, address, and hearing date noted on the diskette label, by November 2, 2000. Copies of written statements should be sent to: Ellen B. Marshall, Palumbo & Cerrell Consulting, Inc. 1717 K Street, NW, Ste. 500, Washington, DC 20006.

Each statement prepared for the public hearing by a witness and any written statement or exhibit submitted for the printed record must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be posted to the Project’s website, but will be maintained by the Project for review and use by the Project.

1. All statements and any accompanying exhibits for posting must be typed in single space on letter-size paper and may not exceed a total of 10 pages including attachments. At the same time written statements are submitted to the Project, witnesses are requested to submit their statements on an IBM compatible 3.5-inch diskette in Word format.
2. Copies of whole documents submitted as exhibit material will not be accepted for posting to the Project’s website. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Project’s files for review and use by the Project.
3. A witness appearing at the public hearing or submitting a statement for the record of the hearing must include on his/her statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.
4. A supplemental sheet must accompany each statement listing the name, full address, telephone number and email address (if applicable) where the witness or the designated representative may be reached.
5. An executive summary, not to exceed two pages, must accompany each statement. The executive summary will not be included in the information posted to the Project’s website.

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