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The Streamlined Sales and Use Tax (SST) Governing Board has  issued a best practices matrix which provides answers to whether the state follows the best practices set forth in the SST Agreement regarding deal-of-the-day vouchers. All SST Member states are to complete and publish their position on the best practices.  The matrix outlines if the “best practiceas approved by the Streamlined Sales Tax Governing Board (SSTGB) for each of the products, procedures, services, or transactions identified in the chartis followed by the specific state. The following best practice descriptions are listed in the matrix along with whether the state follows the best practice:

 

1.       The member state administers the difference between the value of a voucher allowed by the seller and the amount the purchaser paid for the voucher as a discount that is not included in the sales price (i.e., same treatment as a seller’s in-store coupon), provided the seller is not reimbursed by a third party, in money or otherwise, for some or all of that difference.

2.       The member state provides that when the discount on a voucher will be fully reimbursed by a third party the seller is to use the face value of the voucher (i.e., same as the treatment of a manufacturer's coupon) and not the price paid by the purchaser as the measure (sales price) that is subject to tax.

3.       The member state provides that costs and expenses of the seller are not deductible from the sales price and are included in the measure (sales price) that is subject to tax. Further, reductions in the amount of consideration received by the seller from the third party that issued, marketed, or distributed the vouchers, such as advertising or marketing expenses, are costs or expenses of the seller.

 

Unless otherwise listed below, the SST member states have published the Best Practices Matrix and follow the three best practices listed above.

 

The following SST member states have issued the matrix but don’t follow some or all of the best practices listed above as of April 2014: Georgia, Kansas, Nebraska, New Jersey, and Ohio.

 

The following SST member states have not yet issued the matrix as of April 2014: Tennessee, Utah, Vermont, and Wyoming.  Copies of the matrix can be found on each specific state information page on the SST Web page at http://www.streamlinedsalestax.org/index.php?page=state-info.

(05/06/2014)

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services.  Smith had proposed an earlier bill which failed to pass.  This bill is a revised version of the earlier bill. The proposed bill – called the Digital Goods and Services Tax Fairness Act of 2013 – would only allow a state to tax sales of digital goods and services to customers with a tax address within that state. Additionally, states would be barred from imposing multiple taxes on digital goods. The bill defines digital goods as sounds, images, data and facts maintained in digital form. Internet access service is not included as a digital good in the bill. (H.R. 3724)

(01/28/2014)

The Streamlined Sales Tax (SST) Governing Board has approved Ohio as a full member state. Ohio will become a full member, effective January 1, 2014. Taxpayers registered through the SST Central Registration System will be automatically registered in Ohio on January 1, 2014 and must begin collecting Ohio sales and use taxes unless already registered to do so. A taxpayer that does not expect to make sales in Ohio and is not a Model 1 Seller (a seller who uses a certified service provider) will have from January 1, 2014 to January 31, 2014 to access their account and indicate the anticipated absence of sales in Ohio. If this indicator is not changed to reflect the lack of sales, Ohio will expect to receive a return for each reporting period. Amnesty offered under Streamlined Sales Tax will close for Ohio on December 31, 2014. (Press Release, Streamlined Sales Tax Governing Board, November 5, 2013)

(11/26/2013)

Ohio Governor John R. Kasich has signed the fiscal year 2014-2015 state budget, which contains various tax changes. Effective September 1, 2013, Ohio’s state sales tax rate increases from 5.5% to 5.75%. (H.B. 59, Laws 2013, generally effective 91 days after filing with the Secretary of State, applicable as noted; Bill Analysis, Ohio Legislative Service Commission)

(07/22/2013)

Ohio Governor John R. Kasich has signed the fiscal year 2014-2015 state budget, which contains various tax changes.Per the legislation, if the U.S. Congress enacts the Marketplace Fairness Act of 2013 authorizing states to require sellers that lack substantial nexus to collect sales or use tax, Ohio will adopt conforming amendments prior to the effective date of the federal legislation, and the Tax Commissioner will adopt rules to administer collection of such taxes.(H.B. 59, Laws 2013, generally effective 91 days after filing with the Secretary of State, applicable as noted; Bill Analysis, Ohio Legislative Service Commission)

(07/22/2013)

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