OLR Bill Analysis
AN ACT CONCERNING THE STREAMLINED SALES TAX PROJECT.
This bill requires the revenue services commissioner, by September 1, 2009, to report to the Finance, Revenue and Bonding Committee chairpersons on the status of the streamlined sales tax (SST) project. The report must:
1. review the current relevance of earlier SST studies,
2. update revenue estimates for the earlier studies,
3. assess federal and other states' actions to further implement the SST, and
4. recommend any further steps for Connecticut.
EFFECTIVE DATE: Upon passage
BACKGROUND
Streamlined Sales and Use Tax Agreement (SSUTA)
The SSUTA is a multistate agreement to simplify state and local sales and use tax laws and administrative procedures to encourage better and less expensive tax collection, particularly on electronic and other cross-border transactions by remote sellers. Among other things, it requires member states to (1) adopt uniform definitions for taxable and exempt products and services, (2) simplify tax rates by limiting themselves generally to one sales tax rate for all taxable products and services, (3) administer both state and local sales and use taxes at the state level, and (4) adopt uniform rules for sourcing transactions based on where items or services are delivered or used. It also establishes three types of certified technology systems for sellers to use to collect and remit sales taxes to all jurisdictions. Finally, the agreement establishes a multistate organization and mechanisms to administer the agreement and settle tax disputes.
COMMITTEE ACTION
Finance, Revenue and Bonding Committee
Joint Favorable
Yea |
53 |
Nay |
0 |
(03/24/2009) |