Sales Tax State Activity Update - July 2004

Streamlined Sales And Use Tax Legislation Update

Iowa
Effective July 1, 2004, Iowa has adopted the Streamlined Sales and Use Tax Agreement. Changes affect food / snack items such as chewing gum, candy is taxable unless it contains flour, soft drinks and juices are taxable unless they contain at least 50% fruit or vegetable juice. In addition, uniform definitional changes are applicable to the lease or rental of tangible personal property.
(News Release, Iowa Department of Revenue, April 6, 2004.) 07/04

Kentucky
Effective July 1, 2004, the state has adopted the Streamlined Sales Tax uniform definitions including rate simplification rules. The adoption of SSTP rules updates definitions of food for home consumption including soft drinks. The state also adopted the uniform definition for lease or rental transactions.

Additional information is available at:http://revenue.ky.gov/newsletters/sufacts_v6n2.pdf
(Kentucky Sales Tax Facts, May 2004, Vol.6, No.2) 07/04

Texas
Texas has delayed the adoption of the Streamlined Sales and Use Tax Agreement. The State will continue to charge sales tax based on origin. The delayed changes affect local tax on services and the collection of local use tax on items shipped to other tax jurisdictions in the state.

Additional details are available at: http://www.cpa.state.tx.us/taxinfo/sales/
(Texas Comptroller Of Public Accounts, Sales Tax Information, 06/25/2004) 07/04

Utah
Utah has delayed the adoption of the Streamlined Sales and Use Tax Agreement and the state will continue to charge sales tax based on the origin. The sourcing change from origin to destination has been delayed until July 1, 2005.

Additional details are available at : http://www.tax.utah.gov/research/bulletins/sst-7-1-04.pdf
(Utah State Tax Commission, Sales Tax Bulletin, 06/28/2004) 07/04

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