Streamlined Sales Tax bill pending in Congress
The Texarkana Gazette focuses on federal legislation this morning that would enact the Streamlined Sales Tax Act. S. 34, filed by Republican Senator Mike Enzi of Wyoming on May 22, would enact and recognize the SSTA -- the bill also includes a small business exemption and a new provision allowing tribal governments to participate if they fully comply with the Streamlined Agreement. Massachusetts Rep. William Delahunt is expected to introduce House companion legislation in the House.
The 2003 Streamlined Sales Tax Act requires Arkansas to be compliant with the governing rules by January 1, 2008. At that time, all of the state's sales and use tax must be uniform in order to comply with the rules of the SSTP governing body. 20 days from today, the state sales tax cut on groceries will take effect, reducing it from 6% to 3%. In effect, all of Arkansas will be seeing a tax cut, except for Texarkana, which will begin paying 7% more on its groceries and utilities as of 1/1/08 (4% state, 1.5% for city, 1.5% for county). Grocery shoppers on the western side of State Line Avenue won't pay any sales tax on groceries. Our best hope at this point is intervention from Congress, with the 2nd priority being a repeal of the other 3% state sales tax on groceries (well, all of it but the 1/8 cent conservation tax, which can't be repealed by statute), which likely won't be considered until 2009.
From all indications, the fate of the S.34 is likely doomed. House Majority Leader Steny Hoyer says it's not on anybody's radar. Similar legislation has been introduced and killed in each of the last several years. Congressman Ross is in the district this week, and I've visited with Drew Goesl, his chief of staff (and Texarkana native) about getting this issue on the radar of key Congressmen. The entire purpose for entering into the agreement is for states to be able to collect sales tax from remote sellers (mainly internet and catalogue transactions). More than 1,000 volunteer sellers are currently collecting taxes on remote sales nationally. In order to remain a member state of the SSTP and to accept sales tax from remote sellers, member states must be compliant by January 1, 2008. Arkansas is receiving approximately $2M annually from its status as a member to date, and the statistics that were put before the Arkansas General Assembly in 2003 when this passed included figures that the state would benefit in the range of $400 million annually once (if) congress consents to the Streamlined Sales Tax Act. That's approximately 10% of our general revenue. Congressional action would require remote sellers to collect the sales and use tax.
The states that have become members of the compact are Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oklahoma, Rhode Island, South Dakota, Vermont, West Virginia, Arkansas, Nevada, Ohio, Tennessee, Utah, and Wyoming. Washington has enacted legislation to join the compact, and its application is pending with the governing board.
The 2003 Streamlined Sales Tax Act requires Arkansas to be compliant with the governing rules by January 1, 2008. At that time, all of the state's sales and use tax must be uniform in order to comply with the rules of the SSTP governing body. 20 days from today, the state sales tax cut on groceries will take effect, reducing it from 6% to 3%. In effect, all of Arkansas will be seeing a tax cut, except for Texarkana, which will begin paying 7% more on its groceries and utilities as of 1/1/08 (4% state, 1.5% for city, 1.5% for county). Grocery shoppers on the western side of State Line Avenue won't pay any sales tax on groceries. Our best hope at this point is intervention from Congress, with the 2nd priority being a repeal of the other 3% state sales tax on groceries (well, all of it but the 1/8 cent conservation tax, which can't be repealed by statute), which likely won't be considered until 2009.
From all indications, the fate of the S.34 is likely doomed. House Majority Leader Steny Hoyer says it's not on anybody's radar. Similar legislation has been introduced and killed in each of the last several years. Congressman Ross is in the district this week, and I've visited with Drew Goesl, his chief of staff (and Texarkana native) about getting this issue on the radar of key Congressmen. The entire purpose for entering into the agreement is for states to be able to collect sales tax from remote sellers (mainly internet and catalogue transactions). More than 1,000 volunteer sellers are currently collecting taxes on remote sales nationally. In order to remain a member state of the SSTP and to accept sales tax from remote sellers, member states must be compliant by January 1, 2008. Arkansas is receiving approximately $2M annually from its status as a member to date, and the statistics that were put before the Arkansas General Assembly in 2003 when this passed included figures that the state would benefit in the range of $400 million annually once (if) congress consents to the Streamlined Sales Tax Act. That's approximately 10% of our general revenue. Congressional action would require remote sellers to collect the sales and use tax.
The states that have become members of the compact are Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oklahoma, Rhode Island, South Dakota, Vermont, West Virginia, Arkansas, Nevada, Ohio, Tennessee, Utah, and Wyoming. Washington has enacted legislation to join the compact, and its application is pending with the governing board.
posted by Steve Harrelson @ 6/11/2007 06:37:00 AM | Permalink |
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