GMTC BLOG


Ben Cunningham-Streamlined Sales Tax Losing Steam!!
October 1, 2007, 6:15 pm
Filed under: Uncategorized

Streamlined Sales Tax Agreement is losing steam and thats a good thing

Tennessee is a member of the The Streamlined Sales Tax Coalition. The so-called Streamed Line Sales Tax is an agreement among State Tax administrators to try to simplify the process of creating sales tax on out of State sales. In other words, the tax collectors want to make it easier to collect more taxes. Did the citizens ask for this new policy? NO. Have we been balancing the budget without these new taxes? YES.

If you are like most Tennesseans you have probably never heard of the Streamlined Sales Tax Agreement. Thats because It is a textbook example of government institutional self-promotion and self-preservation completely unrelated to the wishes of citizens and taxpayers. The ONLY people pushing the SST are government bureaucrats seeking higher revenue completely unrelated to any policy change. The tax collectors simply want to collect more tax. The taxpayers, of course, have a different perspective and the taxpaying citizens are the ultimate bosses of government, not the tax collecting bureaucrats.

A recent article which is linked and excerpted below indicates that the SST is losing momentum. That is a good thing. Government policy should be determined by the people through their elected representatives, not by unelected bureaucrats:

Article Link

However, several large states are reluctant to join the sales tax project because they feel changing their laws would be a burden on their businesses and cause some local jurisdictions to lose revenue.

Here’s why:

The project’s rules require all delivered merchandise to be taxed according to where it is delivered, not where the store is located.

Kansas changed its sales tax law in 2003 to comply, resulting in complaints by small businesses that it created an expensive burden on them to calculate the amount of sales tax on each delivery sale.

The same concern has prevented other states, including Missouri, from joining the effort.

Ohio, Texas and many other large states still use a store’s location to determine the sales tax on delivered goods. Switching to a delivery rate, they contended, would hurt localities with businesses that do a lot of deliveries.

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