HB 321 - Streamlined Sales and Use Tax Agreement Summary

• Adopts the Streamlined Sales and Use Tax Agreement to simplify multi-state sales tax administration and reduce compliance burden for sellers and remote sellers.

• Replaces bracket-based tax calculation system with a rounding method (to nearest whole cent) for computing sales and use taxes on individual transactions or invoices.

• Establishes criteria for determining transaction location (situs) based on delivery location, property type, and seller location; creates databases to identify taxing jurisdictions and holds sellers/purchasers harmless for using erroneous state-provided tax data.

• Creates collection allowances for certified service providers and voluntary sellers under the agreement; authorizes amnesty from prior uncollected taxes for sellers registering under the agreement within 12 months.

• Eliminates mail-order sales provisions; revises food and medical product exemptions; allows dealers to use either per-item or invoice-basis tax calculation; and repeals section 212.0596 relating to mail-order sales taxation.