Brief (1)
SB 252 would authorize the Department of Revenue to become a signatory to the multistate streamlined sales and use tax agreement and make preparations for its implementation, which would not occur until such time as the Legislature takes further action to bring the state's laws into compliance with the agreement.
The Department would be specifically required to identify all changes in law and rules and regulations necessary and sufficient to meet the agreement's compliance requirements.
The bill also clarifies that the Secretary of Revenue or his designee is authorized to represent Kansas before other states participating in the streamlined sales tax project or that are signatories to the agreement.
Background
Legislation enacted in 2000, the "Streamlined Sales Tax System for 21st Century Act," authorized 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.
That law includes 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 was 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 was authorized to participate in a sales tax pilot project with other states and selected businesses to test methodologies for simplifying administration of the system. Kansas is currently one of four states selected to be directly involved in the pilot project.
The 2000 law also established a legislative oversight committee and required 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.
SB 252 represents the Kansas version of the Uniform Sales and Use Tax Administration Act as one piece of model legislation proposed by the ongoing multistate discussions.
Proponents included the League of Kansas Municipalities and the Kansas Association of Counties.
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/fulltext.cgi