September 28, 2006 - Streamlined Sales Tax Amnesty to End
COLUMBUS, Ohio - Ohio businesses are reminded that an amnesty program offered by the 13 full member states of the Streamlined Sales Tax Project expires September 30. Interested businesses must act quickly to take advantage of this opportunity to avoid potential sales tax liability in those states (listed below). Ohio, as one of 5 associate member states (listed below), is required by the streamlined sales tax agreement to provide amnesty through December 31, 2008.
In general, the streamlined agreement makes a business eligible for amnesty if the business has not registered with the project within the past 12 months and has not collected sales tax in one of the member states during that time. If a business registers by September 30, the terms of the amnesty are that there will be no liability for previously uncollected sales tax in any of the member states prior to the registration. The amnesty forgives uncollected sales tax, penalties, and interest in the member states. It does not apply to taxable purchases made by the business for its own use or consumption.
Businesses that wish to apply for the amnesty can contact the executive director of the governing board, Scott Peterson, directly at 615-460-9330.
The Streamlined Sales Tax Project is a multi-state initiative working to simplify and make uniform sales and use tax laws in member states. Businesses that voluntarily register with the project agree to collect sales and use tax on taxable sales in member states and can voluntarily collect tax for associate member states. This agreement will level the playing field between retail businesses and catalog and Internet sellers and capture millions of tax dollars that are currently not being collected. For Ohio, this amounts to an estimated $600 million in lost revenue annually to both the state and local governments.
Full Members: Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oklahoma, South Dakota, West Virginia.
Associate Members: Arkansas, Ohio, Tennessee, Utah, and Wyoming.
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For more information, contact Gary Gudmundson, ODT Communications Director, at (614) 644-6903.