The second bill signed into law provides for a single statewide sales tax rate that retailers may collect if they have no nexus with the State. In return for voluntary collection at that rate, retailers would receive protection from audit exposure if they are ultimately found to have nexus. Such retailers may now be fully compliant with Utah sales tax law by filing a single return for each period, with a single tax base and a single rate. Although the new law provides no immediate benefit to Northwest Project participants, most of whom have nexus in Utah, the law does further emphasize Utah s support for Northwest Project initiatives and its increasing willingness to address the complex issues surrounding sales tax simplification. Virginia Virginia has recently commenced an on-line registration program and is launching an Internet filing program on a small group basis.
Taxpayers are now able to calculate their Virginia tax bills on-line as well.
Under the auspices of the Northwest Regional Sales Tax Pilot Project, Washington State has also enacted legislation regarding uniform tax rate and boundary change notification measures, which is functionally equivalent to that which was signed into law in Utah. In Washington, however, this new law contained an additional provision, namely that vendors who properly utilize rate calculation technology developed and provided by the State to calculate the amount of tax due on taxable sales shall be held harmless from rate calculation errors and would not be held liable for the difference in amount due nor be subject to any penalties. The Subcommittee reported that the State will continue its participation in the Northwest Project, which will continue working to develop uniform exemption procedures, uniform definitions, and other simplification initiatives. Progress Report of Work of Related Projects Northwest Regional Sales Tax Pilot Project The States of Idaho, Utah, and Washington have gathered together in a cooperative effort to develop a sales tax system that effectively harmonizes and simplifies sales taxes within the three States, which will enable businesses to comply more efficiently with the States sales tax requirements. Each State has assembled government representatives as well as members from businesses that are headquartered in those States to participate in the Project.