Washington SSTP Conformity Legislation Introduced

Washington has introduced legislation to conform to the requirements of Streamlined Sales and Use Tax Agreement which, if passed, which will become effective July 1, 2008. Prior attempts were made; however, legislation failed due to fear by some local governments of revenue consequences and by small businesses that objected to compliance costs. Additionally, there were concerns regarding the impact of destination-based sourcing. Due the sourcing changes, small businesses would likely be affected. Therefore, the legislation provides some relief from interest and penalties for errors resulting from sourcing changes.would provide relief for them. In addition, these businesses could use a certified service provider (CSP) at no cost to themselves for two years, or claim a credit of up to $1,000 for the costs of complying with the changes in local tax sourcing. (H.B. 1072, January 9, 2007; S.B. 5089, January 10, 2007)

Posted on February 7, 2007