The October 1, 2005 effective date for the Streamlined Sales Tax Project was a surprising achievement, according to state tax experts John Healy and Bruce Nelson in a recent article in CCH’s Journal of State Taxation. The ability of the states to reach the level of agreement they have so far on definitions, sourcing of sales and other ways to reduced sales tax complexity was beyond what many thought was possible when the SSTP first began. But the hardest part lies ahead, Healy and Nelson note, as the states try to bring in more of the highly populated states needed to convince Congress that enough progress has been made to overturn the U.S. Supreme Court’s decision in Quill. That 1992 decision held that states cannot force remote sellers to collect sales and use tax unless they have actual physical presence in the state in question. In their article, Healy and Nelson analyze the recent developments and look ahead to the hurdles that could still trip up the streamlined sales tax.
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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.
Read this article from CCH’s Journal of Taxation of Financial Products.