The Streamlined Sales Tax Project is an effort created by states, with input from local government and the private sector, to design, test, and implement a simplified sales and use tax collection and administration system that can be used by all vendors for all types of commerce. In December 2000, the Project approved a Uniform Act and Uniform Agreement that provides the basis for state legislatures to debate and enact legislation to implement a more simplified system in their states. Following approval, the Project’s Act and Agreement were forwarded to the states, the National Governors’ Association (NGA), and the National Conference of State Legislatures (NCSL).

Project co-chairs, Diane L. Hardt (Wisconsin Department of Revenue) and Charles D. Collins (North Carolina Department of Revenue) also announced that Vermont will increase its support of state efforts to streamline and simplify sales and use tax laws. By Executive Order of Governor Dean, Vermont will become a Participating state in the Streamlined Sales Tax Project, increasing the number of Participating states in the Project to 30. Nine states are Observer states to the Project.

Ms. Hardt also announced an endorsement of the Project’s Uniform Sales and Use Tax Administration Act and Streamlined Sales and Use Tax Agreement. In a February 2, 2001 letter to the Project from Govs. John Engler (R-MI) and Parris Glendening (D-MD), co-chairs of the National Governors’ Association (NGA), the organization commends the Project for its efforts and expresses the governors’ endorsement of the Act and Agreement approved by the Project in December 2000. In addition to the NGA endorsement, Ms. Hardt noted that several state legislatures have already taken action to introduce and debate the Act and Agreement as approved by the Project.

Mr. Collins announced that the NCSL Executive Committee had unanimously endorsed the Act and Agreement after making several amendments to delete some elements of the Project’s proposals. Collins stated that NCSL indicated that deletions were made to allow more states to pass the Act during their 2001 legislative sessions. Collins commented, "We do not believe NCSL formulated a proposal that is dramatically different from the recommendations of the Project. The NCSL version contains additional guidance on issues such as governance that is fairly consistent with proposals being discussed by the states in the Project. The Project proposal requires a higher level of simplification in the Act and although some issues such as uniform definitions were deferred by NCSL, they will still have to be a part of any agreement."

Collins expressed appreciation for the support of NGA and NCSL for the Project and its work products and indicated that all groups were encouraging states to enact as much of the legislation as possible this year. He noted that states passing the Project’s version or the version amended by the NCSL would continue to work together to accomplish the goals of creating a simplified system for all taxpayers and for all types of commerce. Collins concluded by saying "There is a significant amount of work to be done by all groups to devise and implement a simplified system and everyone—the states involved in the Project, NGA, NCSL, the business community, and others--must continue to work together to make it happen."

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