Uniformity Features of the Streamlined Sales Tax System for the 21st Century
Working Draft as Discussed in Denver on March 8 & 9—Subject to Revision by States Developing the System
Uniformity Feature Applicable to Sellers Choosing Full System Applicable to Other Sellers Work Group Assignment
  1.  Uniform Sourcing Rule for All Transactions (including agifts)YesYesSourcing & Other Simplifications
  2.  Standardized Geographic Coding System for Local RatesYesPossibleRate, Registration, Returns & Rem..
  3.  Local Rate SimplificationState OptionState OptionRate, Registration, Returns & Rem..
  4.  Uniform Required Notice and Limited Frequency of Rate Changes (including annexations)YesYesRate, Registration, Returns & Rem..
  5.  Uniform Product Codes for Exemptions by Product CategoryYesYesTax Base &   Exemption Adm.
  6.  Uniform Definitions g744(mid-term availability)YesYesTax Base &   Exemption Adm.
  7.  No or Minimal Sales Tax Returns or Reporting Requirements for Participating SellersYesNoRate, Registration, Returns & Rem..
  8.  Central, One-Stop Registration SystemYesYesRate, Registration, Returns & Rem..
  9.  Simplified Exemption Administration for Use & Entity Exemptions
      a)  States provide database of exempt ID numbers.
      b)  States would remove current “good faith” requirement, and sellers would no longer police transactions for states. Purchasers asserting privilege of a use or entity exemption would only present ID number or other identifying information (if ID numbers not required). Seller would ensure only that type of exemption claimed is available under state law. ID or other identifying information would be gathered, and provided periodically to the state for compliance purposes.
YesYes, if the seller can adapt this feature into their systems.Tax Base &   Exemption Adm.
10.  Uniform Treatment of Bad DebtsYesYesSourcing & Other Simplifications
11.  Systems Checks of Sellers and Minimal Exposure to Audits (under no return/no audit option)YesNoTechnology, Audit & Privacy
12.  Uniform Audit Procedures for Calculation Services or VendorsYesYes
13.  State and Local Taxes Remitted at State Level Returns Only, with State Responsible for Distributing Funds to Local GovernmentsYesPossibleRate, Registration, & Rem..
14.  Voluntary Registration Not a Factor in Determining Nexus for Income or Other Taxes; and Terms and Conditions for Past Liability ReliefYesYes, if applicableSourcing & Other Simplifications
15.  Uniform Rounding RulesYesYesSourcing & Other Simplifications
16.  Privacy ProtectionsYesYesTechnology, Audit & Privacy
17.  Joint Certification of SoftwareYesPossibleTechnology, Audit & Privacy
18.  State Compensation for SystemYesPossiblePaying for the System


State 2003
Pennsylvania$ 358 Million
New York$ 849 Million
Alabama$ 145 Million
California$ 1.493 Billion
Florida$ 754 Million
Illinois$ 454 Million
Louisiana$ 244 Million
Massachusetts$ 163 Million
Michigan$ 407 Million
North Carolina$ 239 Million
Ohio$ 361 Million
South Carolina$ 124 Million
Wisconsin$ 172 Million