Brief (1)
SB 560, the "Streamlined Sales Tax System for 21st Century Act," would authorize the Department of Revenue to enter into discussions and agreements with other states in an effort to construct a system to collect taxes on transactions involving remote sellers.
The bill would include explicit findings by the Legislature that state and local tax systems should treat transactions in a competitively neutral manner to strengthen and preserve sales and use taxes as a vital revenue source; and that states working together have the opportunity to develop a simple, uniform, and fair system of taxation absent federal "mandates of interference."
The Department would be authorized to develop along with other states "joint requests of information" from potential public and private parties governing the specifications for a multi-state, voluntary, streamlined system of sales and use tax collection and administration. The Department also would be authorized to participate in a sales tax pilot project with other states and selected businesses to test methodologies for simplifying administration of the system.
The bill also establishes a legislative oversight committee and requires the Department to report to the Governor, the President of the Senate, the Speaker of the House, the Senate Minority Leader, the House Minority Leader, and the oversight committee by March 1, 2001, on the status of the multi-state discussions and to recommend whether the state should participate in any proposed system arising out of such discussions.
Background
The original bill was model legislation prepared by the National Conference of State Legislatures which would authorize states to work together in developing the new tax system without relying on potential federal legislation which may (or may not) be developed or recommended by the Advisory Commission on Electronic Commerce.
The Department of Revenue said that Kansas is losing at least $50 million per year in uncollected revenues as a result of transactions made with remote sellers.
Other proponents included the Kansas Chamber of Commerce and Industry, the League of Kansas Municipalities, and the Kansas Association of Counties.
One Senate Committee of the Whole amendment clarifies that all return information submitted to any party acting on behalf of the state be treated as confidential, and that disclosure of any such information necessary for the pilot project only be authorized after the Department of Revenue has entered into a written agreement with such party.
A second Senate Committee of the Whole amendment corrects a statutory reference and is technical in nature.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html