Sales Tax Articles
Sales Tax State Activity Update - September 2007
SSTP Sourcing Strife in Ohio
The Ohio legislature has failed to pass a measure which would require all businesses to collect local sales tax on a destination basis, by January 1, 2008. The January date is when all associated members are expected to be in full compliance with the Streamlined Sales and Use Tax Agreement.
State Representative Bob Gibbs is now representing Ohio on a national task force reviewing the impact of a shift to destination sourcing for local sales tax and developing solutions to mitigate the impact on businesses. Representative Gibbs was recommended for the task force by the Ohio Department of Taxation.
Ohio Tax Commissioner Richard A. Levin stated they are responding to the concerns they have heard from the small business community about the impact destination sourcing.
Representative Bob Gibbs stated that destination sourcing puts additional compliance costs on many of Ohio's businesses. He also stated that if the sourcing issue is not resolved and there is not a satisfactory solution by October 1, 2007 Ohio would no longer be an active participant.
The Ohio legislature in the last budget bill included an exemption from destination based sourcing for retailers with less than $500,000 in annual delivery sales in Ohio which is contrary to the streamline rule requiring across the board destination based sourcing.
The Streamlined Sales Tax Governing Board, as a result of Ohio's action, created a task force on destination sourcing to try and develop a workable solution before next meeting in September.
You can view the official news release on the Ohio Department of Taxation Website.
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