Streamlined Sales Tax Project

Several years ago tax officials and legislators from various states convened to discuss the future of state sales taxes in the Internet age. U.S. Supreme Court cases since 1967 have restricted the collection of sales tax in certain cases and the development of the Internet brought many out-of-state retailers into the homes of consumers. Most of these out-of-state retailers had no sales force, store, or other connection with the states where products could be purchased. This made the collection of sales and use generally unenforceable as both a legal and practical matter.

Under the auspices of groups like the National Council of State Legislatures and the National Governors Association, the Streamlined Sales Tax Project began. The SSTP was created to devise a framework for states to collect taxes on remote sellers such as catalog operators and internet retailers. To do this under prior court decisions the collection of sales tax from state to state had to be simplified and differences between laws needed to be streamlined.

The vending industry, with several different sales tax laws applying across the country, was potentially affected by the SSTP. For more information please contact NAMA.