States of the Union
States back a uniform sales-tax system that would raise additional revenue. What will the change mean for you?
Strapped by an eroding sales-tax base, many states are pushingfor a streamlined tax system through adoption of the StreamlinedSales Tax Agreement. Under this multistate agreement, member stateswould collect sales tax on interstate sales using uniform rules.The aim is to capture some of the taxes states are losing on mailorder and other remote sales. If it becomes operational, thestreamlined tax will have a big impact on any business that sellsproducts, and those with lots of multistate sales will be mostimpacted, says Mike Stewart of Waller,Lansden, Dortch & Davis in Nashville, Tennessee.
Currently, a state can't collect sales taxes on merchandisethat a business sells in another state unless that business has asmall sales force, a company plant or an office in that otherstate. But under a streamlined system, that will change. Companieswill be responsible for collecting sales tax not only for in-statesales, but for remote sales as well.
4th of July Subscription Sale - Unlock this subscriber exclusive article and more for 20% off today.
Access all Entrepreneur content with no ads, unlock discounts, and get exclusive advice only available to our subscribers. Plus, our magazine delivered straight to your door.
Get 20% off an annual subscription today. Just use code SAVE20 at checkout.
Entrepreneur Editors' Picks
Tory Burch Built a Brand Around Empowering Women. Now Her Foundation Is Furthering Her Mission: 'How Do We as a Company Have a Positive Impact on Humanity?'
This Founder Had to Play College Basketball in Men's Shorts and Shoes, So She Launched an Athletic Clothing Company Named After the Now 50-Year-Old Title IX Act
Is Beyoncé's 'Break My Soul' the Theme Song of the Great Resignation?
You're Probably Falling for All of Amazon Prime Day's Psychological Sales Tactics. A Marketing Professor Reveals Them — and How You Can Actually Get the Best Deal.
Comedian Paul Virzi: 'If You're Not Authentic, You Have Nothing'
Struggling to Come Up With Creative Ideas? Try Doing This.
Picking a Winning Emerging Brand Is How You Get Rich in Franchising. Here's How to Spot One.