Streamlined Sales Tax Member States Submit New Certificates of Compliance and Update Tax Administration and Taxability Matrices for 2022

All Streamlined Sales Tax Agreement member states have now submitted their 2022 updated certificates of compliance, tax administration practice matrices, and updated library of definitions. The Streamlined Sales Tax Agreement is an agreement that establishes uniform definitions, streamlined practices, and simplified digital tools to reduce the burden of tax compliance on taxpayers. As part of this agreement, states annually certify how their administrative policies and tax exemptions fit within the streamlined sales tax agreement’s definitions, practices, and processes.  Though many states made few or only small updates to their previous materials, a new question and scattered updates provide additional tools for any taxpayer hoping to remain in compliance in these 24 states.

  • The states addressed a new question on the Tax Administration Practices Matrix, number 305115, which addresses each state’s requirements for address level sales tax rate sourcing. The Streamlined Sales Tax Agreement requires that each state maintain a database of sales tax rates for each five digit and nine digit zip code in the state. If they elect to, a state can also provide specific, street address level rate and jurisdiction information. Taxpayers and Certified Service Providers are protected from liability or penalty from collecting the wrong amount of tax if they use these state provided databases to determine their tax rates, but states that have a street address database have the option to only offer this protection to taxpayers and certified service providers who determine tax based on street address.

The following states indicated that they require taxpayers and CSPs to rely on the street address level state database to determine tax rates:

  • Iowa
  • Kansas
  • Kentucky
  • Nebraska
  • North Carolina
  • Ohio
  • Oklahoma
  • South Dakota
  • Tennessee
  • Utah
  • Vermont
  • Washington
  • West Virginia
  • Indiana also updated their answer to question 107010, which asks if states have any laws or regulations in place in response to a presidentially declared state of emergency. Indiana noted their state’s Executive Order 20-05 (issued March 19, 2020) that allowed the DOR to extend any non-essential deadline for a period of no more than 60 days, and to implement case specific penalty adjustments for late filings during the Covid-19 state of emergency. The state of emergency in Indiana officially ended in March 2022.
  • Minnesota updated their answers to Section 319 about multiple tax remittances for a return to reflect the retirement of the former June prepayment required from businesses that had a tax liability of $250,000 or more in the previous year.
  • Nebraska updated their taxability matrix to include their exemption for feminine hygiene products that comes into effect on 10/1/2022.
  • New Jersey and Nevada updated their answers to questions about sales tax holidays to reflect their new sales tax holidays.
  • Rhode Island updated their taxability matrix to include the exemption for breast pumps and supplies that comes into effect 10/1/2022.
  • Tennessee updated their practices to reflect that, effective 1/10/2022, Tennessee suppliers may accept a resale certificate issued by another state or a fully completed Streamlined Sales and Use Tax Exemption Certificate that includes the tax ID number issued by the other state to make drop shipped sales for resale without tax.

These changes are effective with the recertification either 7/1/2022 or 8/1/2022, depending on the state. The full versions of each state’s Library of Definitions and Tax Administration Practices can be found at:

Streamlined Sales Tax Taxability Matrix: Library of Definitions, Taxability Matrix: Tax Administration Practices, Certificate of Compliance, as of 8/12/2022.

Posted on September 9, 2022