State Tax Department

Streamlined Sales & Use Tax Information Sheet

If you make sales into states without collecting those states' sales tax; If you make deliveries into those states in your own truck; If you send repair or maintenance employees or representatives into various states to perform work on your behalf; If you sell items through a Web site or catalog and then accept returns at an in-state brick and mortar store; If you market products jointly with an affiliate that sales through catalogs or the Internet; If you use in-state solicitors, whether employees, agents or independent contractors to make sales into a state Are you ready to take the guesswork out of your "nexus status"? Then… You should take advantage of an amnesty program that is available in all states participating as full members or associate members of the Streamlined Sales Tax Agreement.   The Streamlined Sales and Use Tax Agreement became effective October 1, 2005. This agreement is a multi-state simplification of varying sales and use tax laws. The agreement is the joint effort of 44 states, the District of Columbia, local governments along with members of the business community to develop measures to design and implement a system that simplifies the collection and remittance of sales and use tax between retailers and states. Who are members? There are currently 13 member states, 5 associate member states and Nevada will become an associate member state January 1, 2006. Full-Member States Associate-Member States* Indiana Arkansas Iowa Ohio Kansas Tennessee Kentucky Utah Michigan Wyoming Minnesota Nebraska New Jersey North Carolina North Dakota Oklahoma South Dakota West Virginia *Associate-member states are those who have petitioned for membership but have not met all of the requirements of the agreement however, changes to their statutes, rules, regulations or other authorities will be effective on or before January 1, 2008. It is anticipated that other states will become members as the effort moves forward. What is the benefit for the seller? Sellers who volunteer to collect and pay sales and/or use tax in the member states, may be eligible for AMNESTY.  AMNESTY! Amnesty is available to sellers for sales and use taxes uncollected or unpaid on sales for any period prior to their registration through the Streamlined Sales and Use Tax Central Registration system in all states whether they are full or associate members. For full-member states, the amnesty period will end on September 30, 2006. For associate-member states, the period will vary depending on the effective date of their compliance with the agreement. What sellers are not eligible for amnesty? Sellers are not eligible for amnesty in a member state if: The seller is currently registered in the member state to collect sales and use tax, or The seller had been registered in the member state within 12 months of the state becoming a member state, or The seller has received notice of an audit by the member state and the audit is not yet fully resolved, including any related administrative and judicial processes. What is excluded from amnesty? Sales or use taxes owed by the seller in its capacity as a buyer Sales or use taxes already paid or remitted to member states in which the seller was registered Sales or use taxes collected by the seller that are unpaid to member states Liability for taxes other than sales or use taxes INFORMATION OBTAINED THROUGH THE STREAMLINED REGISTRATION SYSTEM MAY NOT BE AND WILL NOT BE USED BY THE MEMBER STATE FOR DETERMINING NEXUS FOR OTHER TAXES. To register: Visit the Web site of the Streamlined Sales and Use Tax Central Registration System to register to collect taxes for the member states in which you make sales. The information provided will be sent electronically to all of the full member states, regardless of whether you have sales in those states, and to associate member states for which you have chosen to collect the sales or use tax. Requirements for maintaining amnesty: The amnesty provisions in the Agreement require that a seller must maintain its registration and continue to collect and remit applicable sales and use taxes for at least 36 months after the date of registration through the Streamlined Sales and Use Tax Central Registration System in a member state. Amnesty will be available for a seller who registers through the Central Registration System and indicates its intent to use a Certified Service Provider (Model 1). Since Certified Service Providers are not available at this time, the Governing Board expressed its intent to allow sellers to register and delay collection responsibility until such time as the Certified Service Provider service is available. Amnesty will be provided throughout this time frame. If a registration is not maintained for the required 36 months or if a seller is found to have committed fraud or intentional misrepresentation in the application, the amnesty agreement may be voided by the member state. Individuals and companies seeking more information on the Streamlined Sales and Use Tax Agreement and the new simplified system can refer to the Web site at www.streamlinedsalestax.org or contact the West Virginia State Tax Department, Taxpayer Services Division at (304) 558-3333 or 1-800-982-8297, Monday - Friday 8:30 a.m. - 5:00 p.m. EST. What if a seller owes tax to West Virginia other than Sales and Use Tax? If a seller is conducting business within West Virginia, but has not registered with the State Tax Department or filed the necessary tax returns, they may be eligible for a Voluntary Disclosure Agreement. What if a seller owes money to West Virginia but does not qualify for amnesty under the Streamlined Sales and Use Tax Agreement? If a seller does not qualify for amnesty for sales and use tax and have not filed returns or have underreported sales tax liabilities, they may be eligible for a Voluntary Disclosure Agreement.   WV State Home | WV State Tax Department | Streamlined Sales & Use Tax