Policy Solution

How should states ensure simple, accurate and efficient sales tax collection and remittance?

All states should develop frameworks to certify service providers to ensure accurate and efficient sales tax collection and remittance. Certified Service Providers (CSPs) have a proven record of facilitating higher compliance rates and more accurate tax collections.


 
 

What are the key components of a CSP framework?

States working to build CSP frameworks should include the following key provisions in their framework:

  1. Authorizing tax officials to establish standards for CSP certification;

  2. Requiring tax officials to maintain a database of tax jurisdictional boundaries and rates;

  3. Establishing minimum certification standards;

  4. Providing liability relief for CSPs and sellers relying on state data; and

  5. Exempting a remote seller’s registration from any determination of taxation nexus.