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Home / Legislative Action Center / Issues - Budget & Taxes / Legislature Unanimously Agrees to Streamline Sales Tax Sourcing |
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Legislature Unanimously Agrees to Streamline Sales Tax Sourcing |
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Written On: March 20, 2007 |
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Written By: Richard Davis |
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OLYMPIA—The Association of Washington Business applauds the Legislature for passing SB 5089, a bill that brings Washington's tax structure into alignment with the nationwide Streamline Sales Tax Agreement (SSTA). This legislation is part of a national effort to simplify sales and use tax administration, which eases the burden on businesses operating in multiple states and creates incentives for remote sellers to voluntarily collect these taxes. Formerly, Washington was at a competitive disadvantage because Washington-based companies had to compete with out-of-state retailers who were not legally required to collect Washington sales taxes.
"The legislation is the result of a collaborative effort between the business community, cities and counties throughout the State of Washington," said AWB President Don Brunell. "It brings Washington into line with the federal agreement and helps small businesses compete."
The SSTA is a voluntary program designed to recoup losses of revenue caused by out-of-state online purchases. Tax payments will be based on actual sales, but will not require any supplemental reporting from businesses. "This program works because it is voluntary—without the creation of new taxes," Brunell said. "By adopting these changes, Washington will gain an estimated $32 million in additional revenues through the voluntary collection of existing taxes."
Organizations that worked with AWB to promote the legislation include the Association of Washington Cities, the Washington Retail Association and the Washington State Association of Counties.
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