Ohio has filed motion to propose the implementation of a transition period for small businesses to convert to the destination-based sourcing rules required under the Streamlined Sales and Use Tax Agreement. This comes after two delays to the effective date of Ohio’s legislation to implement destination-based sourcing. If enacted, this amendment would possibly alleviate the multi-state concern that small businesses will not have sufficient time or support to implement a destination-based sourcing tax system prior to the effective date of each state’s conforming legislation. The proposed three-year transaction period would gradually require small businesses to conform to the destination-based sourcing system as the maximum threshold of sales decreases exponentially each calendar year. For 2005 and 2006, businesses with sales in the previous calendar year not exceeding $2 million would not be subject to the destination-based sourcing rules. In 2007 and 2008 the threshold drops to $1 million and $500,000, respectively. After 2008 all business would be subject to the destination-based sourcing rules. This proposed amendment is expected to be discussed at the April 16, 2005 SSTIS meeting in Washington, D.C. (Letter and Motion, Ohio Department of Taxation, February 10, 2005)