Streamlined Sales and Use Tax Agreement
The Streamlined Sales and Use Tax Agreement, abbreviated as SSUTA, is an agreement among about half of the states in the USA to simplify and modernize the collection of sales and use taxes among member states. First organized in 2000, the goal of this agreement is to help simplify the member states' sales tax rules in order to facilitate easier sales tax compliance for businesses with sales tax obligations in multiple states.
The central tenants of the Streamlined Sales and Use Tax Agreement are designed to simplify and streamline sales tax laws in the following ways:
- State-level administration - Sales taxes must be managed by a single state agency, and businesses cannot be required to submit multiple tax returns in each state in which they conduct business.
- Uniform tax base - All jurisdictions in a state must use the same tax base, which means that all goods and services are taxed the same way within each state. States can still determine which items are taxable, and at what rate.
- Simplified tax rates - The same tax rates should apply across all jurisdictions
- Uniform sales tax sourcing - All members states should use origin sourcing for in-state sales, and destination sourcing for out-of-state sales
The following 24 states plus the District of Columbia have fully conformed to the Streamlined Sale and Use Tax Agreement: Arkansas, Georgia, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Washington, West Virginia, Wisconsin and Wyoming.
In the map below, you can see which states have fully complied with the SSUTA as well as which states are not members of the agreement.
