Streamlined Sales Tax Governing Board Approves Consulting With Major Stakeholders on Vendor Compensation Standards

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The Streamlined Sales Tax Governing Board took a step forward April 30 in approving a discussion draft of language addressing vendor compensation. The issue has been a major stumbling block to the introduction of a federal bill enabling states to require remote sellers to collect sales and use tax on their behalf. A compromise apparently has been reached, however, in allowing the states to devise language governing vendor compensation and the tax treatment of communications services. Expected to be introduced within two weeks, the new version of the federal bill is to include placeholder language for these two components, which are critical to generating the support of stakeholders.

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