California Joins Streamlined Sales Tax Project

Share this content:
California joined the list of states participating in the Streamlined Sales Tax Project following Gov. Gray Davis' signing last week of S.B. 157, which takes effect Jan. 1.


California is the 39th state to join the SSTP, a coalition of about 40 states working to create a more uniform sales tax structure for state and local governments.


Currently, only sellers with a physical presence in the same state as the buyer are required to collect taxes, according to a 1992 Supreme Court ruling, because the thousands of tax jurisdictions nationwide are too burdensome for direct marketers to track.


The SSTP last year developed the Streamlined Sales & Use Tax Agreement, which it says would overcome the Supreme Court's objections by greatly reducing the thousands of state and local sales tax rates. For example, the agreement restricts how and when states and municipalities could change their tax rates. In addition, local jurisdictions could not have more than one local sales tax rate.


S.B. 157 doesn't require California to adopt the agreement or change its tax structure, only to join the SSTP.


Last month, Reps. William Delahunt, D-MA, and Ernest Istook, R-OK, introduced H.R. 3184, the Simplified Sales and Use Tax Act of 2003, to give states that adopt the SSUTA the authority to require all out-of-state retailers to collect sales taxes on their behalf.


Sens. Byron Dorgan, D-ND, and Michael Enzi, R-WY, are expected to debut a companion bill soon.


close

Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

USAData helps businesses find new customers and grow their current customers through a combination of data and digital marketing services, and easy-to-use SaaS technology products. We enrich customer data so businesses can more effectively target and communicate with customers, and connect them with their best look-alike prospects through digital and traditional channels. We make it easy through simple, self-serve applications and APIs, as well as through full-service programs managed by our Data and Digital experts. 

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above