The Streamlined Sales Tax Governing Board has adopted a best practice for states to give remote sellers 30 days to register and start collecting and remitting sales tax after meeting the economic nexus threshold. However, the Board failed to pass its proposal for US states to use gross sales as basis in gauging whether remote sellers meet a state's monetary economic nexus threshold.
The proposal to adopt the best practice to use gross sales in determining whether a remote seller meets a US state's economic nexus threshold got 15 votes. However, it failed to meet the required three-fourths supermajority of the 22 full member US states (i.e. 17 votes). As a result, the Board would not update the Streamlined Sales and Use Tax Agreement to include the gross sales basis proposal.
While best practices are not binding on the compact's 24 member states, supporters of the proposal said adopting it could encourage US states to be uniform in measuring economic nexus thresholds.
Note: The SST is a membership organization, comprising 24 member states currently, with the goal of simplifying and modernizing sales and use tax administration in order to substantially reduce the burden of tax compliance.
Source: IBFD Tax Research Platform News