Group Proposes Sales Tax Standardization

Compiled ByFrank R. Chloupek In November the Streamlined Sales Tax Project (SSTP), a group of elected officials from 30 states, approved a set of proposals that are a first step in the necessary simplification needed for the effective levying of sales taxes on Internet sales. The key proposal is a single rate for sales tax across the more than 7,000 jurisdictions in the U.S. The General Accounting Office estimates that over $13 billion in sales tax is currently uncollected from Internet purchases. The SSTP now faces the task of convincing local states to approve the plans. The group has set a goal of 10 states covering 20% of the U.S. population to approve their proposals. Once this limit is reached, the SSTP will seek congressional legislation imposing a national sales tax on Internet sales. Last October Congress passed a two-year moratorium on national Internet sales taxes.