Multi-State – States in Compliance With SST Agreement

SALT Report 1817 – The Streamlined Sales Tax Compliance Review and Interpretations Committee (CRIC) recently voted and unanimously found that Arkansas, Iowa, Kansas, and North Dakota are “not out of compliance” with the SST Agreement.  Before the vote, Iowa and North Dakota were asked to resolve issues regarding grooming and hygiene products sold with a prescription.  In an effort to comply, the states added comments on their taxability matrix to clarify that grooming and hygiene products sold with a prescription are exempt.

The committee chose to defer making any decisions on North Carolina to give the state more time to resolve an issue regarding definitions for sourcing of advertising and promotional direct mail and other direct mail. Specifically, North Carolina has a definition for direct mail in its statutes, but does not have definitions for advertising and promotional direct mail or other direct mail, which are sourced differently. Representatives from North Carolina indicate that the state may be able to resolve the issue with a legislative change in 2013.

For Further Information:

Streamlined Sales and Use Tax Governing Board – CRIC Meeting Materials