Sales Tax Program Accepts New Seller/Software-Provider Contract

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By Ryan Prete

A sales tax uniformity committee has approved additions to a contract between software providers and sellers voluntarily collecting sales tax.

The Streamlined Sales Tax Governing Board Inc.'s Executive Committee approved changes to a Certified Service Provider (CSP) draft contract on May 25 by a 6-2 vote. The board administers the Streamlined Sales Tax Program, through which sellers voluntarily collect and remit sales tax to the 24 state participants, which cover filing costs and other fees.

Under the SST, sellers are set up with a CSP—software companies with which sellers establish an agreement to begin collecting tax. More than 3,700 businesses have enlisted in SST, according to Craig Johnson, the SSTGB’s executive director.

In part, the additions reflect the impending U.S. Supreme Court ruling in South Dakota v. Wayfair, a long-awaited direct challenge to the 1992 decision in Quill Corp. v. North Dakota.Quill, which states for years have tried to “kill” through lawsuits and legislation, prohibits states from imposing sales tax collection obligations on vendors lacking an in-state physical presence. The case was argued April 17 and practitioners expect a decision by late June.

“If state legislation is enacted or an administrative action is taken to require sellers that would otherwise meet the definition of ‘volunteer seller’ under this contract to register to collect and remit the tax from their customers and that legislation or action is upheld by a United States Supreme court decision, the Contract shall be renegotiated no later than six (6) months after such decision,” reads one addition to the contract.

After executive committee approval, the SSTGB will hold a special meeting to approve the draft before Executive Committee President Dan Noble can sign the contract.

The SSTGB will hold its annual meeting from Oct. 2-4 in St. Louis.

Johnson said the SSTGB would hold an additional meeting following the high court ruling in South Dakota v. Wayfair.

To contact the reporter on this story: Ryan Prete in Washington at rprete@bloombergtax.com

To contact the editor responsible for this story: Ryan C. Tuck at rtuck@bloombergtax.com

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