Destination-based Sales Tax Streamlined Sales and Use Tax Agreement Presented April 22, 2008
Recording date of this workshop is April 22, Some of the rules and procedures discussed in this workshop are subject to change. Please check university resources before relying exclusively on this recorded presentation. Recording date of this workshop is April 22, Some of the rules and procedures discussed in this workshop are subject to change. Please check university resources before relying exclusively on this recorded presentation.
Background Catalog and Internet sales Growth in untaxed sales has increased 25% annually Washington relies on sales tax to fund essential public services Many Washington businesses are losing sales: $10 billion per year
Background Destination-based sales tax is also an effort to remove the competitive disadvantage Washington businesses face. It is a change in the way sales tax is collected.
Background The national Streamlined Sales and Use Tax Agreement
Current law: Retail sales tax is collected at the rate for the location (store or warehouse) from which the goods are shipped. New law: Effective July 1, 2008, retailers must collect sales tax using the rate for the location where the customer receives the merchandise. What will change
Example 1: Destination-based sales tax
Example 2: Destination-based sales tax
City business license is not required because of deliveries by common carrier (Substitute House Bill 3126) 2008 legislation
There is no change: When the customer receives the goods at the seller’s location When a seller delivers goods to the customer at a location outside the state When the sale is a wholesale sale For sales of most services What doesn’t change
Motor vehicles Trailers Semi trailers Aircraft Watercraft Manufactured, modular and mobile homes Towing services Florists (more than 51% of sales must be flowers) What doesn’t change
Up to $1,000 in tax credits Software, hardware, IT services, or anything needed to implement change Can claim starting July 2008 or Two years of service from a Certified Service Provider Small business assistance
To qualify, you must have: Less than $500,000 in Washington sales annually 5% of taxable sales income from deliveries At least 1% of taxable sales income from deliveries outside the jurisdiction where most sales tax is collected Small business assistance
Tax rate lookup, including handheld access City and county tax rates Customer database conversion service Excel worksheet Downloadable files Tools
dor.wa.gov
destinationtax.dor.wa.gov
Address lookup with calculator 6500 Linderson Way SW Tumwater $100.00
Address/calculator results
ZIP+4 lookup with calculator
ZIP+4/calculator results
Map lookup
Map lookup results
Tax lookup by latitude/longitude
Latitude/longitude results
By address or latitude/longitude taxrates.dor.wa.gov Lookup on handheld devices
Lookup results
City/county tax rates
Tax rates listed alphabetically
City/county tax rates
Tax rates listed by county
City/county tax rates
Tax rates in Excel format
City/county tax rates
Tax rates in QuickBooks format
Customer database conversion service
Submit customer database
Customer database results
Customer database error file
Excel worksheet
Sales ledger tab
Summary tab
Local tax reporting tab
Location codes and rates tab
Deductions tab
Downloads
State address data
Downloads
Address database download fields
Downloads
Location code and rate table
ZIP+4 downloads
Coming soon County maps – Show location code boundaries and tax rates Available upon request Updated quarterly Other tools
Being researched Web service – enables point-of-sale or shopping cart software to interact with the department’s online tax rate lookup tool. Other tools
Web: destinationtax.dor.wa.gov Phone: You may also request a written ruling or contact us at: Department of Revenue Taxpayer Services PO Box Olympia, WA More information
WSU employees attending this session via videoconferencing and who wish to have it recorded on their training history must notify HRS within three days of the session date: