US states fall foul Streamlined Sales Tax Board

Governing body of Streamlined Sales and Use Tax calls out 3 states

The Streamlined Sales Tax Governing Board (SST) found Georgia, Nebraska, and Ohio non-compliant with the Streamlined Sales and Use Tax Agreement (SSUTA) during its 2024 Annual State Compliance Review.

• Georgia was flagged for four tax administration issues, including non-compliance since 2013.
• Ohio’s non-compliance was linked to its sales tax holiday, as the state’s notice to vendors did not meet the SSUTA’s 60-day notification requirement.
• Nebraska violated section 308 of the SSUTA by applying multiple state tax rates within designated taxing districts under the Good Life and Transformational Projects Act (LB 727). Despite Nebraska’s non-compliance, a workgroup was formed to consider an amendment allowing an additional state tax rate under certain conditions.

The Compliance Review and Interpretations Committee (CRIC) will assess these findings, along with public comments, starting 17 September 2024.

The SST’s remaining 20 member states, along with Tennessee (associate member), were found to be compliant with the SSUTA. The SST works to simplify sales tax administration across its 23 member states, aiming to create a uniform and competitive environment for businesses and retailers. Public comments on state compliance are invited until 3 September 2024.

Harmonising US sales tax compliance

SSUTA focuses on four major requirements for simplification of state and local tax codes:

1) state level administration;

2) uniform tax base;

3) simplified tax rates; and

4) uniform sales sourcing rules.

There are 23 participating states in addition to Washington D.C.

US Sales Tax rates and selling thresholds