Streamlined sales tax agreement goes into effect.Online and other out-of-state out-of-state adj. Of, relating to, or being from another state. retailers will find it substantially easier to collect sales taxes sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. since the voluntary Streamlined Sales and Use Tax Sales and use tax refers to:
Nineteen states have signed the Streamlined Sales and Use Tax Agreement, designed to provide simplicity Simplicity is the property, condition, or quality of being simple or un-combined. It often denotes beauty, purity or clarity. Simple things are usually easier to explain and understand than complicated ones. Simplicity can mean freedom from hardship, effort or confusion. and uniformity for out-of-state retailers. In exchange for voluntarily collecting remote sales taxes, retailers will be compensated compensated /com·pen·sat·ed/ (kom´pen-sa?tid) counterbalanced; offset. for the costs of collecting taxes and released from liability resulting from sales tax collection accounting errors. The agreement does not change tax rates. It provides states a way to conform their tax codes with uniform definitions and simplified sim·pli·fy tr.v. sim·pli·fied, sim·pli·fy·ing, sim·pli·fies To make simple or simpler, as: a. To reduce in complexity or extent. b. To reduce to fundamental parts. c. administrative and sourcing rules. Each state maintains its sovereignty sovereignty, supreme authority in a political community. The concept of sovereignty has had a long history of development, and it may be said that every political theorist since Plato has dealt with the notion in some manner, although not always explicitly. on which items are subject to the sales tax and which are not. The U.S. Supreme Court ruled in 1967 and again in 1992 that states do not have the authority to require remote sellers to collect sales and use taxes in states where a retailer does not have a physical presence as the nation's more than 7,500 sales tax codes were an undue burden to interstate commerce interstate commerce In the U.S., any commercial transaction or traffic that crosses state boundaries or that involves more than one state. Government regulation of interstate commerce is founded on the commerce clause of the Constitution (Article I, section 8), which . The court, however, did leave open the door for Congress to grant collection authority to the states. By creating uniform standards and rules, states are hoping that Congress will grant them the authority to require retailers to collect sales taxes.
COMBINED STATE & LOCAL
ESTIMATED REVENUE LOSSES
FROM E-COMMERCE AND ALL REMOTE COMMERCE FOR 2008
State E-Commerce All Remote Sales *
(millions) (millions)
Alabama 238.7 449.7
Arkansas 190.6 359.2
Arizona 435.7 821.1
California 2,452.0 4,620.4
Colorado 287.8 542.4
Connecticut 266.0 501.2
District of 48.8 91.9
Columbia
Florida 1,248.2 2,351.1
Georgia 600.0 1,130.5
Hawaii 130.3 245.5
Iowa 141.4 266.4
Idaho 66.3 125.0
Illinois 582.2 1,097.0
Indiana 323.6 609.7
Kansas 178.8 336.9
Kentucky 214.6 404.3
Louisiana 409.8 772.2
Massachusetts 286.4 539.6
Maryland 265.9 501.1
Maine 67.2 126.6
Michigan 587.3 1,106.6
Minnesota 381.2 718.3
Missouri 313.9 591.5
Mississippi 191.9 361.6
North Carolina 405.9 764.9
North Dakota 34.3 64.6
Nebraska 123.4 232.4
New jersey 469.9 885.5
New Mexico 140.4 264.6
Nevada 186.6 351.5
New York 1,288.4 2,427.7
Ohio 608.6 1,146.8
Oklahoma 185.4 349.3
Pennsylvania 585.6 1,103.4
Rhode Island 58.5 110.3
South Carolina 209.4 394.5
South Dakota 47.0 88.6
Tennessee 508.3 957.9
Texas 1,634.5 3,079.9
Utah 150.7 284.0
Virginia 294.8 555.4
Vermont 29.1 54.8
Washington 574.6 1,082.7
Wisconsin 303.4 571.7
West Virginia 86.6 163.2
Wyoming 38.9 73.3
United States 17,872.9 33,677.8
* This includes catalog, television and phone sales and e-commerce.
Source: Dr. Donald Bruce & Dr. William Fox, Center for Business &
Economic Research, University of Tennessee.
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