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(FOR IMMEDIATE RELEASE--October 9, 2002)
Contact Information:
Ellen B. Marshall
202-662-3712
Streamlined Sales Tax Project Co-chair Announces Retirement
Charles Collins, co-chair of the Streamlined Sales Tax Project (SSTP) and Director of the Sales and Use Tax Division of the North Carolina Department of Revenue, announced his retirement at the SSTP meeting on September 27 in Milwaukee. Collins’ retirement is effective in October.
"Charles has demonstrated a unique ability to take the complex issue of sales and use tax law and administration and break it down into simple steps," commented Sabra Faires, Assistant Secretary for Tax Administration at the North Carolina Department of Revenue. "His ability to balance the needs of both the state and business has assisted greatly the state in maintaining a fair tax system."
In addition to his 32 years of service to the Department of Revenue, Collins has served for the past three years as co-chair of the SSTP, an effort initiated by state governments to develop and implement a simplified sales and use tax administration system. A multi-state agreement based on the work of the SSTP will be voted upon by states involved in the project in November.
"It has been a pleasure to work with Charles on this project," commented Diane L. Hardt, SSTP co-chair and Administrator with the Wisconsin Department of Revenue. "I don’t think either of us were prepared for the monumental task the SSTP would be—but Charles helped to guide both the states and the business community through some very difficult issues. His personality, perseverance, and dedication to detail were key to the success of this effort."
One of the most difficult tasks of the SSTP was gaining the cooperation and support of the business community. Numerous business interests—retail, telecommunications, leasing, software, and others—are affected in different ways by sales and use tax laws and administration. One of Collins’ initial tasks was identifying the complex issues that had to be resolved for each industry. "Every seller that collects sales tax on behalf of states has unique circumstances that affect their day-to-day operations," stated Wayne Zakrewski, Assistant General Tax Counsel of J.C. Penney. "Charles worked with the business community to understand each seller’s business operations in order to determine how the simplified system could be built to relieve much of the burden of sales tax administration," Zakrewski continued. Equally important to the success of the simplified system will be its use by both large and small retailers. "Both Charles and Diane have worked to insure that the simplified system is user-friendly to all types of retailers," commented Warren Townsend, Director of Wal-Mart Stores, Inc. "While national retail chains have in-house resources and capabilities to handle the simplified sales tax calculation and collection procedures, some small businesses may lack the in-house resources or do not want to alter their current operations. Charles Collins was particularly helpful in insuring that the simplified system is accessible to all retailers—and I believe this will greatly enhance use of the system."
Collins' extensive experience and knowledge of tax administration also helped states to envision how the existing paper-driven system could be redeveloped into a system incorporating the latest in technology. "The sales and use tax systems currently used by the states do not take
advantage of new technology that, if developed, could greatly simplify the process for both government and business," commented W. Val Oveson, a former state tax commissioner now with PricewatershouseCoopers. "The development of the technology and revising the administration policies that drive the technology, could significantly improve the administration of sales and use tax."
Numerous individuals involved in the SSTP were involved in previous efforts aimed at reforming state sales and use tax laws and dealing with the thorny issue of sales tax collection on remote sales. While the previous effort achieved limited success, many observers to the SSTP process are viewing its chances of overall success more positively. "The SSTP co-chairs made a real effort to get the input, assistance, and acceptance of the business community from the very beginning," commented Deborah Bierbaum, Director of External Tax Policy for AT&T. "While businesses and states had to compromise on a number of issues, I believe that the final agreement will be acceptable to both parties. Had it not been for the willingness of Charles Collins and Diane Hardt to mediate many of these discussions, I do not believe that process of facilitating the agreement would have gone as smoothly as it has. "
If states approve the agreement in November, state legislatures could begin considering whether to join the agreement and revise their state statutes to take advantage of the simplified system in early 2003.
Mr. Collins recently took some time to reflect on his experiences. "Working with everyone involved in the SSTP—the state executive and legislative branch, local government and business representatives—has been one of the highlights of my professional career," Collins commented. "I am astounded at the level of commitment and cooperation shown by everyone—and very appreciative of the expertise that has been shared to help build the Streamlined Sales Tax System. It has been a privilege to be a part of this effort. I look forward to keeping in touch with the many friends that I have made and in monitoring developments relating to the formal adoption and implementation of the simplified system by states and sellers. I take great pride in what we have accomplished."