Jessica Iverson, 608-266-2300, jessica.iverson@revenue.wi.gov
New provisions will simplify, standardize sales tax administration
MADISON – Wisconsin today became the 23rd member state of the Streamlined Sales and Use Tax (SST) Governing Board at the board’s meeting in Arlington, Virginia. SST is a national effort to simplify the administration of state and local sales taxes for businesses and government. Governor Jim Doyle signed legislation in February conforming state law to the standards of the SST Agreement, making Wisconsin eligible to become a full member.
“Our membership in the Streamlined Sales and Use Tax Agreement is a significant step forward in our overall effort to modernize the state’s tax system,” said Revenue Secretary Roger M. Ervin. “National standards make it simple for businesses to understand and comply with our laws, while leveling the playing field for our Main Street businesses.”
The agreement allows states to make independent decisions about which products and services are taxable and exempt, while also providing uniform definitions, administrative procedures, and technology standards across all states. The goal is to increase tax compliance among all businesses, especially multi-state businesses, while removing the competitive disadvantage for local businesses. The SST agreement also seeks to address the fiscal concerns related to e-commerce growth.
The initiative is supported by many business groups and individual businesses, including more than 1,100 multi-state businesses that have registered to voluntarily collect sales and use tax in the now 23 states conforming to the SST agreement.
The SST provisions, also known in Wisconsin as the Main Street Equity Act, are effective on October 1, 2009. Over the next several months DOR plans significant education for sellers about changes in definitions and procedures, and will roll out several online tools to assist businesses with the transition, including a sales tax rate finder searchable by address.
Governor Doyle has urged Congress to enact federal legislation that would require compliance with the SST provisions by Internet retailers to prevent additional state revenue losses due to e-commerce.
