Stay up to date with sales tax: Join our mailing list!

SST Board Resolves Bundling Issues


SSTP

After six years of negotiations, the Streamlined Sales Tax (SST) Governing Board has adopted a compromise rule despite concerns regarding the complexity of the definition and interpretation. Several states had originally objected to the inclusion of rules that allowed a price of any de minimis taxable products (representing 10% or less of the otherwise considered bundled transaction) to be tax exempt, but eventually withdrew their request of suggesting a dollar cap on the de minimis test. This request was eventually dropped. Instead, once a transaction has been determined not to be a bundled transaction, states are prohibited from (1) using thresholds to tax a portion of the sales price, (2) taxing the total sales or purchase price, or (3) requiring sellers to separately-state (or itemize) taxable products on the invoice.

(12/28/2006)
(Archived)
Scroll to Top