The Streamlined Sales Tax Project, also called the Zero Burden System, is a joint effort between over 30 states and the National Governor's Association (NGA), the Federation of Tax Administrators (FTA) and the Multi-State Tax Commission (MTC) to design, test and implement a new sales and use tax system for the 21st century.
The State of New Jersey supports the goals of the Project and has been involved as an Observer state since September, 1999. In August, 2000, New Jersey became a Participating State, which indicates that the state is committed to participating in the new system and allows state representatives to vote at project meetings. Representatives from the New Jersey Division of Taxation attend all monthly meetings and participate in the Work Group discussions.
The goal of the project is to reduce the burdens and costs that are currently imposed on local and remote sellers of property and services under the current systems for collecting, reporting and remitting taxes. The new system will increase uniformity, retain state flexibility, and maintain the highest level of security and privacy. It will ease consumer concerns regarding tax collection in online commerce transactions and streamline compliance for e-commerce companies as well as bricks and mortar businesses.
The Project plans to have a pilot launched in the fall of 2000. The pilot is intended to test the capabilities and limits of the current tax collection software, and will include several participating states, many software vendors and numerous retailers. It is anticipated that the information gathered in the pilot will assist the Work Groups in designing the new system.
Additional information on the Project