Retailers and other businesses that properly use technology provided by the DOR to calculate taxes are not liable for tax rate calculation errors. The DOR must waive any unpaid tax amounts, interest, and penalties that result from a tax rate calculation error. The current system which allows tax changes to occur at anytime is complicated and does not work very well. The provision that holds businesses harmless for rate calculation errors if they use the DOR's GIS system is also attractive. Several persons have been charged taxes that they did not owe.
Local governments are supportive of efforts to simplify sales tax administration.
Limiting tax rate changes to once a tax quarter is reasonable. Cities have a slight concern regarding the language about annexations. It should be clarified that annexations may take effect at any time, but changes in sales tax rates that result from annexations can only take effect at the start of a tax quarter. Ron Rosenbloom, Association of Washington Cities.