Chamber Forum

     The Washington State Department of Revenue will be helping retailers prepare for a coming change in how local sales tax is coded when they deliver products to customers.

     The changes don’t take place until July 1, 2008, but the Department wants to give retailers plenty of time to prepare for this shift from origin to destinationbased sourcing, Revenue Director Cindi Holmstrom said. "We want to make this transition as easy as possible for them."

     The sourcing change stems from legislation enacted this year that conforms Washington’s sales tax system to the national Streamlined Sales and Use Tax Agreement (SSUTA). The SSUTA seeks to preserve the economic vitality of brick-and-mortar businesses by reducing unfair competition from out-of-state sellers who don’t charge sales tax.

     Twenty-one other states are members of the SSUTA, and Washington has petitioned to join them. More than 1,000 Internet and mail order sellers have agreed to voluntarily collect and remit sales tax on sales to customers in member states. Businesses who sell out-of-state can participate, but they are not required to do so.

     Businesses currently code local sales tax to the city or unincorporated county from which a product is shipped. Fifteen months from now, they will begin coding local sales tax to the destination of the delivery.

     This change only affects shipments from one local jurisdiction to another within Washington state. The coding is used to determine which city or county receives the local share of the sales tax. It does not affect shipments to out-of-state customers, nor purchases when customers take possession at the selling location.

     The legislation provides businesses grossing less than $500,000 a year with up to $1,000 in tax credits to offset any necessary changes to their accounting and point-of-sale systems; or the free use for two years of a certified service provider, a third party that can handle the coding, and file the sales tax return for businesses.

     To educate businesses locally, the Department of Revenue and the Chamber encourages everyone to attend the October 8, Chamber Forum to receive more information about the Sales Tax changes. The Forum will be held at The Aerie Ballroom located at 219 S. Tower Ave. in downtown Centralia. Please join us from 11:30 am to noon for casual networking and lunch that is available for $10. The presentation will begin at noon.