1. Destination-based Sales Tax Streamlined Sales and Use Tax Agreement Presented April 22, 2008

2. Recording date of this workshop is April 22, 2008. Some of the rules and procedures discussed in this workshop are subject to change. Please check university resources before relying exclusively on this recorded presentation. Recording date of this workshop is April 22, 2008. Some of the rules and procedures discussed in this workshop are subject to change. Please check university resources before relying exclusively on this recorded presentation.

3. Background  Catalog and Internet sales  Growth in untaxed sales has increased 25% annually  Washington relies on sales tax to fund essential public services  Many Washington businesses are losing sales: $10 billion per year

4. Background Destination-based sales tax is also an effort to remove the competitive disadvantage Washington businesses face. It is a change in the way sales tax is collected.

5. Background The national Streamlined Sales and Use Tax Agreement

6. Current law: Retail sales tax is collected at the rate for the location (store or warehouse) from which the goods are shipped. New law: Effective July 1, 2008, retailers must collect sales tax using the rate for the location where the customer receives the merchandise. What will change

7. Example 1: Destination-based sales tax

8. Example 2: Destination-based sales tax

9.  City business license is not required because of deliveries by common carrier (Substitute House Bill 3126) 2008 legislation

10. There is no change:  When the customer receives the goods at the seller’s location  When a seller delivers goods to the customer at a location outside the state  When the sale is a wholesale sale  For sales of most services What doesn’t change

11.  Motor vehicles  Trailers  Semi trailers  Aircraft  Watercraft  Manufactured, modular and mobile homes  Towing services  Florists (more than 51% of sales must be flowers) What doesn’t change

12. Up to $1,000 in tax credits  Software, hardware, IT services, or anything needed to implement change  Can claim starting July 2008 or Two years of service from a Certified Service Provider Small business assistance

13. To qualify, you must have:  Less than $500,000 in Washington sales annually  5% of taxable sales income from deliveries  At least 1% of taxable sales income from deliveries outside the jurisdiction where most sales tax is collected Small business assistance

15.  Tax rate lookup, including handheld access  City and county tax rates  Customer database conversion service  Excel worksheet  Downloadable files Tools

16. dor.wa.gov

17. destinationtax.dor.wa.gov

18. Address lookup with calculator 6500 Linderson Way SW Tumwater 98501 $100.00

19. Address/calculator results

20. ZIP+4 lookup with calculator

21. ZIP+4/calculator results

22. Map lookup

25. Map lookup results

26. Tax lookup by latitude/longitude

27. Latitude/longitude results

28. By address or latitude/longitude taxrates.dor.wa.gov Lookup on handheld devices

29. Lookup results

30. City/county tax rates

31. Tax rates listed alphabetically

32. City/county tax rates

33. Tax rates listed by county

34. City/county tax rates

35. Tax rates in Excel format

36. City/county tax rates

37. Tax rates in QuickBooks format

38. Customer database conversion service

40. Submit customer database

41. Customer database results

42. Customer database error file

43. Excel worksheet

44. Sales ledger tab

45. Summary tab

46. Local tax reporting tab

47. Location codes and rates tab

48. Deductions tab

49. Downloads

51. State address data

52. Downloads

53. Address database download fields

54. Downloads

55. Location code and rate table

56. ZIP+4 downloads

58. Coming soon County maps –  Show location code boundaries and tax rates  Available upon request  Updated quarterly Other tools

59. Being researched  Web service – enables point-of-sale or shopping cart software to interact with the department’s online tax rate lookup tool. Other tools

60. Web: destinationtax.dor.wa.gov Phone: 1-800-647-7706 E-mail: dorcommunications@dor.wa.govdorcommunications@dor.wa.gov You may also request a written ruling or contact us at: Department of Revenue Taxpayer Services PO Box 47476 Olympia, WA 98504-7476 More information

61. WSU employees attending this session via videoconferencing and who wish to have it recorded on their training history must notify HRS within three days of the session date: hrstraining@wsu.edu