Why is Washington State participating in the Streamlined Sales Tax Project?
For the past several years, the State of Washington has participated in the Streamlined Sales Tax Project (SSTP), a national effort by a coalition of states to make sales and use taxes simpler and more uniform. A desired outcome of the streamlined sales tax project is to convince Congress to pass enabling legislation allowing states to collect sales or use tax on remote sales (e.g. Internet sales). DOR has estimated that an additional $100-150 million could be distributed to Washingtons cities and counties under proposed federal legislation that would allow the imposition of sales tax on remote sellers. Adopted in the 2003 session, SB 5783 implemented the majority of the Streamlined Sales and Use Tax Agreement provisions with which Washington State did not already comply, with the exception of the sourcing rule. The bill also mandated the sourcing study that resulted in the impact estimates released in late 2003 and updated this summer. In the short term, the Department of Revenue beli