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Background of SSTP The Streamlined Sales Tax Project (“SSTP”) is an effort created by state governments, with input from local governments and the private sector, to simplify and modernize sales and use tax collection and administration. The effort has been ongoing since March, 2000, when the project was organized. The Streamlined Sales and Use Tax Agreement (the “Agreement”) became effective on October 1, 2005, when the Governing Board was formed. While the Agreement is not yet mandated, many states (18 to date) have enacted conforming legislation sufficient to be members of the Governing Board – that is, 18 states have amended their sales and use tax provisions to conform with the terms of the agreement, including definitions. Thus, while the Agreement is not yet mandated, it could impact your business today. Click Here to access the most recent version of the Agreement, which includes amendments made at the April 16, 2005 meeting. These amendments, while incorporated into the Agreement, are not required to be in effect until January 1, 2008. Provisions Impacting Software Companies Provisions that may directly impact the software industry include definitions for: Also, provisions related to sourcing may be of impact as well, these include: It is anticipated that the business community will propose a uniform rule regarding software maintenance contracts. A current draft has been circulated at project meetings. Contact Steve Kranz, leader of the Business Advisory Council and Tax Counsel for the Council on State Taxation (COST) at skranz@statetax.org or (202) 484-5221 to obtain a copy of this draft. Additional Resources The following article regarding the SSTP was by Carolynn Iafrate and was published in the March 29, 2005 of State Tax Notes. Questions If you have questions regarding the status of the Project, or how it impacts your business, you can visit the project’s web site at www.streamlinedsalestax.org; or contact:
Bundled Transaction (See Appendix C, Part I)Computer (See Appendix C, Part II)Computer Software (See Appendix C, Part II)Delivered Electronically (See Appendix C, Part II)Delivery Charges (See Appendix C, Part I)Electronic (See Appendix C, Part II)Load and Leave (See Appendix C, Part II)Prewritten Software (See Appendix C, Part II)Retail Sale (See Appendix C, Part I)Sale at Retail (See Appendix C, Part I)Sales Price (See Appendix C, Part I)General Sourcing Rules (See Rules 310 and 311)Multiple Points of Use (See Rule 312)
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