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CRIC Finds States Out of Compliance with SST Agreement


SSTP

On a November 10, 2011 conference call, the Streamlined Sales Tax (SST) Compliance Review and Interpretations Committee (CRIC) voted to find Minnesota, Utah, and Vermont out of compliance with the SST Agreement. South Dakota, Iowa, and Wisconsin were found “not out of compliance” with the Agreement. North Carolina’s compliance issues were discussed on the call, but a vote on their compliance was deferred. The call was part of a series of calls during which the CRIC is performing its annual recertification review of member states’ compliance with the Agreement. The CRIC’s findings will be submitted to the SST Governing Board in December 2011 for its evaluation. Minnesota was found out of compliance with the agreement because the state’s definition of “prepared food” deviates from the Agreement in regards to an exemption from the definition of prepared foods for deli meat. This exemption has been in place for many years and was only addressed this year. The vote for being out of compliance was really focused on the fact that there was a deviation from a standard product definition and the need to eliminate any exceptions to the requirement to follow the definitions. Minnesota was urged to submit a request to modify the definition if they desired to maintain the exemption. Utah was found out of compliance on the issue of effective dates for rate decreases for services. A representative for Utah said that there is a bill pending to correct the issue. Until the bill is passed which would align the effective dates, Utah is out of compliance. Vermont was found out of compliance with the Agreement on its treatment of specified digital products as defined in Agreement Section 332(D)(2) or (D)(3). The Department anticipates a legislative change.

Member states’ letters responding to issues identified by the SST staff and other meeting materials can be found on the SST Governing Board website here. (Conference call, Compliance Review and Interpretations Committee, November 10, 2011)

(12/13/2011)
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