More States to Follow Colorado and Oklahoma?
As discussed in earlier posts, the MultiState Tax Commission has decided to begin its project for a Sales & Use Tax Notice and Reporting Statute and a “Click-Through” Nexus Statute. The committee is using Colorado's and Oklahoma's statutes as a starting point.
According to information released by the MultiState Tax Commission, a drafting group was formed to develop a policy checklist which served as the basis for teleconference discussions on April 22, 2010; May 13, 2010; and June 22, 2010. On June 22, 2010, the Subcommittee completed its preliminary answers to the policy checklist.
These answers do not reflect the Subcommittee’s formal position at this point. Rather, the answers reflect its policy direction to the drafting committee, which has accordingly produced a first draft for the Subcommittee’s consideration and discussion at its July 26, 2010 in-person meeting.
For all of the details, click on the following links:MTC Uniformity and Subcommittees
Model Sales and Use Tax Notice and Reporting Statute So What?
You might be asking yourself, so what? What does this mean? Well, it most likely means that more states are going to adopt statutes similar to Colorado's and Oklahoma's; therefore, the MTC wants to draft a model statute that other states can use which would help create uniformity among the states.
What does this mean for your company? It means if you haven't already had to comply with Colorado's or Oklahoma's new statutes, you may have to do it in the future for other states. Prepare now.
If you have any questions about how to prepare or comply, please contact me at email@example.com.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at firstname.lastname@example.org.
Because state and local taxes are deceptively simple and endlessly complicated.