Streamlined Sales Tax FAQs
Table of Contents
What is the Streamlined Sales and Use Tax Agreement (SSUTA)?
This SSUTA is the result of the cooperative effort of 44 states, the District of Columbia, local governments and the business community to simplify and make more uniform the sales and use tax collection and administration for retailers and states.
The SSUTA minimizes costs and administrative burdens on retailers that collect sales tax, particularly retailers operating in multiple states. It encourages “remote sellers” selling over the Internet and by mail order to collect tax on sales to customers living in the Streamlined Member States. It levels the playing field so that local “brick-and-mortar” stores and remote sellers operate under the same rules. This Agreement ensures that all retailers can conduct their business in a fair and level competitive environment.
What does this mean for Nevada?
As part of this membership, Nevad moved to a destination-based local sales tax system. Nevada became a full member of the Streamlined Sales Tax on April 1, 2008.
What is the purpose of the Streamlined Sales and Use Tax Agreement (SSUTA)?
The purpose of the SSUTA is to provide a road map for states who want to simplify and modernize sales and use tax administration in their states in order to substantially reduce the burden of tax compliance. The SSUTA focuses on improving sales and use tax administration systems for all sellers and for all types of commerce through all of the following:
A. State level administration of sales and use tax collections.
B. Uniformity in the state and local tax bases.
C. Uniformity of major tax base definitions.
D. Central, electronic registration system for all member states.
E. Simplification of state and local tax rates.
F. Uniform sourcing rules for all taxable transactions.
G. Simplified administration of exemptions.
H. Simplified tax returns.
I. Simplification of tax remittances.
J. Protection of consumer privacy.
Article I, Section 102 SSUTA
How does the SSUTA sumplify sales tax administration?
Sales tax administration is improved through tax law simplification, more efficient administrative procedures, and emerging technologies. Sales tax simplification results from: uniform tax definitions; uniform and simpler exemption administration; rate simplification; state-level administration of all sales taxes, uniform sourcing (where the sale is taxable); and state funding of the administrative costs.
What does the SD v Wayfair U.S. Supreme Court Decision mean?
The United States Supreme Court ruled in South Dakota v. Wayfair on June 21, 2018, that states may require sellers to collect and remit sales or use tax on sales delivered to locations within their state regardless of physical presence if economic nexus exists with the state. We are continuing to review the decision and its implications and are working with the Streamlined Member States to make the implementation of this decision as smooth as possible.
Who is a Remote Seller?
A remote seller is generally a seller that sells products or services for delivery into a state in which that seller does not have a physical presence or other legal requirement to register other than because they exceed the state’s remote seller threshold. You will need to check with each state to determine if you are required to register in that state.
Note: FAQs are for general guidance only. For written advice as it relates to your business, request an advisory opinion from the Department.