SST Governing Board Finds New Jersey Out of Compliance

During the June 18th, 2008 Chicago SST Governing Board meeting, New Jersey was found to be out of compliance with the Streamlined Sales and Use Tax (SST) Agreement. By a vote of 15-2, the Board found that New Jersey was not in substantial compliance with the Agreement because of its failure to enact certain telecommunication provisions. By a unanimous vote, the Board approved a set of staggered sanctions: 1) if New Jersey does not come into compliance by January 1, 2009, it will lose its right to vote on amendments to and interpretations of the Agreement and determinations of whether a petitioning state is in compliance; 2) if not compliant by July 1, 2009, sellers will be relieved of the obligation to collect sales and use taxes on sales into New Jersey, if they are collecting on a voluntary basis solely because of their registration under the Agreement; and 3) if still non-compliant after January 1, 2010, the Board will consider additional sanctions, including expulsion. Once the Board has approved a finding made by the Compliance Review and Interpretations Committee (CRIC) that New Jersey is in compliance with the agreement the above sanctions will end. Additional rules apply. (Streamlined Sales Tax Governing Board and State and Local Advisory Council Meetings, Chicago, June 16-18, 2008)

Posted on August 7, 2008