October 7, 2005 - Ohio Onboard with New and
Streamlined Sales Tax System
COLUMBUS, Ohio -- Ohio joined with 17 other
states this week in rolling out a new system for providing
more uniform procedures for collecting sales/use taxes from
out-of-state sellers (e.g. catalogue and Internet vendors).
The Streamlined Sales and Use Tax Agreement officially took
effect Saturday, October 1. On that same date, a centralized
registration process for multi-state sellers to use was put
into operation. A link to this centralized registration
system can be found at the Ohio Department of Taxation web
site (tax.ohio.gov) or the system can be accessed directly at
The agreement also finalizes the process for selecting
software companies, called Certified Service Providers (CSP),
that will act as liaisons between the states and the
retailers. A CSP can facilitate the process of collecting tax
on Internet and catalogue sales and then transferring the tax
to the state where the tax is due. Retailers, not under
audit, who register with the streamlined system to collect
sales/use taxes, are offered an amnesty for any potential tax
liabilities for sales made prior to registering and on which
no tax was collected.
Retailers, by registering, agree to collect taxes for full
member states. They can also voluntarily elect to collect
sales/use taxes for associate member states. Ohio is an
associate member state now and will become a full member in
States with full-member status are Indiana, Iowa, Kansas,
Kentucky, Michigan, Minnesota, Nebraska, New Jersey, North
Carolina, North Dakota, Oklahoma, South Dakota and West
Virginia. Besides Ohio, other associate member states are
Arkansas, Tennessee, Utah and Wyoming. Nevada will become an
associate member on January 1, 2006. Other states are also
expected to come on board in the near future.
“This is an important step in an ongoing process that should
ultimately assist Ohio and its localities to collect millions
of dollars in sales and use tax revenues that are currently
going uncollected,” said Ohio Tax Commissioner William W.
Wilkins. “Those revenues are important to state and local
governments but equally important, this agreement will help
level the playing field for Ohio retailers trying to compete
with out-of-state companies that charge no sales tax.”
Wilkins says he’s optimistic that Ohio’s participation in the
agreement will help reduce the estimated $600 million
annually in uncollected state and local sales taxes on goods
sold to Ohioans through the mail or online.
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For more information contact Gary Gudmundson, ODT
communications director, at 614-644-6903.