Sales Tax Initiative

Washington has become the newest member of the Streamlined Sales Tax Project (SSTP), a coalition of 22 states that have simplified their laws to encourage retailers to collect tax on Internet and catalog sales to customers in participating states. The state's membership in SSTP goes into effect on July 1, 2008, though participating out-of-state retailers can begin collecting sales tax from Washington customers this July.

Sen. Michael Enzi (R-WY) wants to level the playing field for all in-store, catalog, and online retailers so each has the same sales tax responsibilities.

The American Booksellers Association is encouraging members who participated in its first-ever Legislative Day at BookExpo America, as well as those who did not, to follow up with their senators and representatives to encourage support for issues of import to independent booksellers. For those who met with their senators, representatives, or congressional staff, ABA suggests a note of thanks for the meeting would provide the perfect opportunity to reiterate their concerns.

This week, the American Booksellers Association announced that Neal Osten, federal affairs counsel for communications and interstate commerce at the National Conference of State Legislatures (NCSL), will be a speaker at ABA's first-ever Legislative Day in conjunction with BookExpo America. Osten will provide attendees with an update on the current status of Streamlined Sales and Use Tax legislation (SSUTA) in Congress.

Last week, ABA CEO Avin Mark Domnitz sent letters to Steve Riggio, the CEO of Barnes & Noble, Inc., and Jeff Bezos, the founder and CEO of Amazon.com, in which he encouraged them to join the American Booksellers Association and other retailers in the fight for e-fairness.

On Wednesday, February 8, representatives from Amazon.com and eBay Inc. told the U.S. House of Representative's Small Business Subcommittee on Regulatory Reform and Oversight that collecting sales tax on online purchases is within the industry's capabilities.

With no fanfare, Barnes & Noble has begun collecting sales tax on online purchases made through its Barnes&Noble.com website in 38 states. The company website currently notes, "In accordance with applicable law, Barnes&Noble.com collects tax in all but the following states: Arizona, Hawaii, Louisiana, Maine, Mississippi, New Mexico, Vermont, and the District of Columbia." States that have no sales tax are Alaska, Delaware, Montana, New Hampshire, and Oregon.

On Saturday, October 1, the Streamlined Sales and Use Tax Agreement (SSUTA), which makes it easier for online and other retailers that do business in multiple states to calculate, collect, and remit existing use tax, will become effective in 13 states: Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, Oklahoma, North Dakota, South Dakota, and West Virginia. Currently, there are five states that plan to implement SSUTA within the next two years: Arkansas, Ohio, Tennessee, Utah, and Wyoming.

As a result of last week's admittance of 17 states as either full or associate members to the Streamlined Sales and Use Tax Agreement's (SSUTA) governing board, the new tax system will be effective in fully compliant states as of October 1, as reported by the Bureau of National Affairs (BNA). The process for registering to collect and remit remote sales tax will be made available as of that date, according to Neal Osten, federal affairs counsel for the National Conference of State Legislatures.

ABA President Mitchell Kaplan, outgoing Vice President Suzy Staubach, and incoming Vice President Russ Lawrence at the Town Hall Meeting. ABA's Town Hall Meeting, held on Friday, June 3, at BookExpo America in New York City, was dominated by discussions of e-fairness, health insurance for small businesses, and the issue of damaged shi