CRIC Finds Michigan Out of Compliance with SST Agreement

SALT Report 1188 – On November 3, 2011 the Streamlined Sales Tax Compliance Review and Interpretations Committee voted 4-0 in favor of finding Michigan out of compliance with the SST Agreement.

Michigan was out of compliance due to errors relating to the taxability of certain items in their states’ taxability matrix. These errors were found in the prepaid calling services, electronically transferred products, prewritten computer software, and one-way and two-way paging services sections.

Member States are provided a thirty day period to review the decision and provide a written statement regarding the CRIC’s compliance findings and recertification process. Michael A. Eschelbach, Bureau of Tax Policy for the state of Michigan issued a response stating, “We believe that Michigan was substantially compliant with the Agreement at the time the Certificate of Compliance and the Taxability Matrix were filed with the Governing Board.”

The CRIC will complete its 2011 review of the remaining states in November until all states have been reviewed.

The CRIC is a seven person committee appointed by the President that is responsible for:

  • Recommending rules to the Governing Board to respond to statements of non-compliance
  • Making recommendations to the Governing Board on applications of states for compliance with the Agreement
  • Maintaining a Compliance Review Guide
  • Reviewing all compliance review reports to determine any needs for reassessment
  • Recommending findings of compliance or non-compliance to the Governing Board; and
  • Making recommendations to the Governing Board on matters involving interpretations, definitions, revisions or additions to the SST Agreement