These differences are illustrated by two basic concerns, which go unresolved in this Report. Industry s concern is the complexity of state and local sales and use tax compliance. The Report cites 7,000 taxing jurisdictions, all of whom may want some form of tax filing. Some cite a much larger number of taxing jurisdictions. Safe to say, the number is huge, and compliance is difficult, especially where each jurisdiction operates using its own rules, its own forms, and its own filing schedule.
Business wants simplicity.
A change in state and local sales and use tax that would promote simplicity is a move to one tax rate per state. Congress has had, since 1992, the authority to grant the States the power to compel collection, but has refused to do so. These are two very important concerns. The Report indicated that it could make no recommendations on the one without also making recommendations on the other. Consequently, it would be inappropriate and misleading to treat any tentative or preliminary conclusions that may have been reached in the course of the Project s deliberations as the conclusions of the Project itself.