SLAC Chair
Dave Matelski (MI) - Chair
Merry Hopkins (MN) - Vice-Chair
SLAC Steering Committee
Alex Fant (OH)
Lisa Haws (OK)
Blaine Kreikemeier (NE)
Alison Jares (SD)
Matt Largent (WA)
Mike Bailey - Government Finance Officers Association
Dave Schmiedicke - US Conference of Mayors
SLAC - Workgroups
Workgroups are formed to research specific issues and will meet by teleconference as needed. If you are interested in participating in any of the workgroups please email Bobbie Stellner.
SLAC Workgroups
SL24012 SLAC Work Request - Grooming and Hygiene
The New Jersey Dental Association (NJDA) is requesting that the definition of “grooming and hygiene products for human use that don’t meet the definition of ‘drug’” be modified to remove oral healthcare products for personal use such as toothbrushes, toothpaste, mouthwash, dental floss, tooth powders, and other similar oral products. The proposed outcome is a new SSUTA definition in Section 327, Appendix C for “oral healthcare products” that includes the products listed above.
Work Group Request Digital Codes
BAC proposal to expand the use of the “digital codes” look-through rule beyond specified digital products.
SLAC Work Request Marijuana & Marijuana Products
Should the SSUTA be amended to adopt a definition of “Marijuana and Products Containing Marijuana”?
Define “Marijuana and Products Containing Marijuana” for purposes of the exclusion in Section 106.
SLAC Prior Workgroups
SL24011 SLAC Work Request- Multiple State Rates
Request to allow states to have multiple state sales tax rates in certain situations.
Work Group Request Disclosed Practices- Remote Sellers
AM24004A01 Passed 5-16-2024 DP 89.1.o. Elimination of Transactional Economic Nexus Threshold - when and if a seller can cancel a registration after a state eliminates the transactional economic nexus threshold.
AM23014A02 Passed 5-16-2024 DP 8.1.n Registration and Collection Requirements for Remote Sellers who do not Have any Taxable Sales in the State.
AM23012A01 Failed 5/16/2024 Best Practice 8.1.c Calculation Basis for Economic Nexus Threshold.
AM24006 - Passed 10/8/24 - DP 8.1.c. Attendance at Trade Shows.
SL23030 SLAC work Request - Menstrual Products Definition
Proposed name change and clarification of the definition of “feminine hygiene products”.
Result: AM23010 passed 11-6-2023 modifying definition of Menstrual Discharge Collection Devises and providing states an option to include or exclude a) period underwear; and/or b) all other clothing items marketed for menstrual discharge collection devises.
Work Group request Delivery Charges Toggle
Should an amendment to the Agreement be adopted to give states the option to retain, within the definition of “sales price,” delivery charges involving or relating to sales of electricity, natural gas, or artificial gas by a utility if the state elects to generally exclude delivery charges from the definition of “sales price” that are separately stated on the invoice, billing, or similar document given to the purchaser?
Result: AM23003 passed 5/23/2023 which amended the sales price definition to allow a toggle to exclude certain delivery charges.
Work Group Request - Voting
How is the denominator determined when calculating “the ¾ of the entire Governing Board” need for a particular vote to pass. Are sanctioned states included? Are Associate members included?
Result: AM23006, AM23002, AM23001A01, BL23002A01 BL23001, RP23002 passed 5-23-2023
Work Group Request Sales Tax Holidays
Issue 1 - Should SST develop additional sales tax holiday definitions?
Gun Safety SL23007, resolved with AM24003 passed 5-16-24
School Clothing SL23008, resolved with AM23009A01passed 11-7-23-see issue 2
Issue 2 - What is “sales tax holiday” versus a “regular” exemption with a sunset?
Result: AM23009A01 passed on November 7 2023:
- allows a state that has a sales tax holiday on clothing to exclude baby receiving blankets, and
- defined, for purposes of a sales tax Holiday under Section 322, a temporary exemption is an exemption that is effective for a continuous period of less than or equal to three calendar months.
SLAC workgroup request: Exemption Administration
Provide examples of how to administer the exemption certificate the when seller does not receive it at the time of sale or within 90 days of the sale but does obtain it prior to the time a member state requests it as substantiation for claiming an exemption.Adding examples to Rule 317.1 to clarify when good faith can apply to the acceptance of an exemption certificate.
Work Group Request Economic Nexus Threshold Best Practices
Should SST develop best practices related to economic nexus thresholds?
5-23-2023 AM23007 passed Disclosed Practice 8.1.d.i Remote Seller Transactional Economic Nexus Threshold, added Best Practice: States do not have a transactional economic nexus threshold.
5/16/24 AM23013A01 passed Disclosed Practice 8.1.j Time When Registration is Required, added Best Practice: The State does not require a Remote Seller to register and begin collecting and remitting the tax sooner than the first day of the first calendar month that begins 30 days after meeting or exceeding the state's threshold.
Should App N be reviewed and revised to exclude the reference to specific product named items, as well as updating other information as appropriate?
Currently App N classifies specific items as either candy or not candy. An explanation is given for some items where clarification is helpful. Most of the explanations give the reason why the item is or is not candy. However, for the items identified as cereal bars w/flour and cereal bars w/out flour rather than a reason for the classification, examples of specific products are given. The specific products may have fallen within the types of items identified at the time App N was adopted, however, it has been brought to the attention of SST staff that some of the specific products listed as examples of cereal bars w/out flour in fact do have flour listed on the ingredient label.
Result: RP22007 passed 12/22/2022 which amended the listing of items in Appendix N
SLAC Work Request: Sales Price Toggle for Manufacturer Coupons
The State and Local Advisory Council (SLAC) is establishing a new workgroup in response to a request from a member state to review the Agreement’s current treatment of manufacturer coupons and possible adoption of a toggle to the definition of “sales price” that would allow a state to exclude manufacturer coupons from the definition of “sales price”.
Result: AM22001A03 passed 12/22/2022 allowing states to select a toggle to exclude from sales price all coupons issued by a manufacturer, supplier or distributor of a product(s) that entitle the purchaser a reduction in sales price and allowed by the seller who is reimbursed by the manufacturer, supplier or distributor. When the seller accepts such coupons, only the amount paid by the purchaser is included in the sales price.
SSUTA Section 107
SSUTA Section 322 Sales Tax Holidays
Appendix C - Definitions
Issue: Should the SSUTA be amended to adopt a definition of “personal protective equipment” for purposes of sales tax holidays and/or allowing states to exclude these items from other defined terms contained in the SSUTA (i.e., clothing) permanently?
Result: The workgroup concluded that action was not needed at the present time because no states are currently seeking permanent exemptions for personal protective equipment. The Governing Board was advised of this at its October 2021 meeting and no states or members of the public expressed concerns with the development of a whitepaper instead of an amendment to the Agreement.
SLAC Work Request Sourcing Digital Products
Sections 305, 306, 307, 310 and 311
Issue: Proper calculation of the tax on sales of digital goods and liability relief if only a 5-digit zip code is obtained.
AM24002A02 Passed 5/15/24, 2nd vote passed 7-18-24. Provides a state may use the highest blended rate, when jurisdictions for an address have multiple rates, provides that a seller must request address or zip9 information to obtain liability relief and when liability relief is provided.
The State and Local Advisory Council has received a work request to address a number of issues that have arisen surrounding unregistered sellers and foreign sellers, including what identification information is required on the exemption certificate for it to be a complete and valid certificate when claiming an entity, product or use based exemption.
Result: AM22003A02 Amended Appendix E to Add Disclosed Practice 9 Tax Administration Practices - Exemption Certificates to the Taxability Matrix - Passed 10/6/2022
RP22005A01 Amended Rule 317.1 Administration of Exemptions passed 10/6/2022
The State and Local Advisory Council has received a work request to develop a toggle in the prepared food definition to allow states to either tax or exempt items that would become prepared food if a seller exceeds the 75% test and makes utensils available.
Result: AM21006 (passed 10-5-2021) Amended Part II of Appendix C to allow states to either tax or exempt items that would become prepared food if a seller exceeds the 75% test and makes utensils available. Incorporated the 75% test established in Interpretive Opinion 2006-04 into the definition of “Prepared food”.
The State and Local Advisory Council has received a work request form (see attached) to develop further clarification for "not defined" terms in Appendix L and Disclosed Practice 7.
Interpretation Request sent to SLAC by CRIC and approved by Governing Board 10-15-2020Result:
AM21002 Amend Appendix E, Disclosed Practice 7 - Healthcare passed 5-20-21
AM21003 Amend Section 327 - Library of Definitions passed 5-20-21
RP21002 Amend Appendix L - Healthcare Item List passed 5-20-21
Result: AM20003A02 Amended Part II of Appendix C to allow states exclude certain products from the definition of "candy." Passed 12-18-2020
RP21001 Amended Rule 327.8 Candy Passed 5-20-2021
RP21003 Amended Appendix N Classification of Food and Food Ingredients Passed 5-20-2021
Proposed Amendment Rule 810.3 SL20012A01
Result: RP20005 amended Rule 810.3 passed 10-15-2020
SLAC Work Request SL19018
Issue: Disclosure of Marketplace Facilitators laws, including:
* Certification of collection on behalf of marketplace sellers
* Exemption Certificates
* Survey Results of States laws
Working on potential disclosed practices for Marketplace facilitators, sellers and remote sellers.
Result: AM21005A01 Amended Appendix E to add Disclosed Practice 8 - Remote & Marketplace Sellers/Facilitators Passed 5-20-2021
Issue: How to Identify barriers to participating in SSTGB and benefits for non-member states to participate.
Result: MC19008 and MC19009 Resolutions approved by Governing Board 12/20/2019
Work Request
Model Breast Pump Sales Tax Exemption Legislation
Parity for Pumps Member State Impact
Section 104 Defined Terms; Section 209 Product-Based Exemption; Section 316 Enactment of Exemptions; Appendix C Library of Definitions
Issue: Should the SSUTA adopt a product-based definition of breast pumps, breast pump supplies, breast pump kits, and repair services that can be used where desired by members states?
Result: AM19003 Added definition of Breast Pumps, Breast Pump Collection and Storage Supplies and Breast Pump Kits to SSUTA - Governing Board approved 12/20/2019
February 2019
Section 209, 310, and 311
Issue: Sourcing of Services. This will continue the discussion of how services are sourced resulting in the development of an interpretive rule or tax administration practices.
Result: Per discussion no action required.SLAC Work Request SLAC Work Request (accepting multiple returns)
Section 308.C. Uniform Tax Returns - Simplified Electronic Return (SER)
Issue: States imposes taxes other than sales tax that are currently reported on the state sales tax returns. The SER only allows for reporting of sales tax, potentially resulting in sellers filing filing multiple returns each reporting period. Should the SER be expanded to allow reporting of taxes, other than sales tax. Discussion will include potential changes to the SER to accommodate other reporting requirements by the states.
Result: Referred to Certification Committee May 6, 2019
SLAC Work Request
Section 401.D. Seller Participation
Issue: Can or should a state be able to use a seller's registration through SST to give notification to sellers of possible other tax responsibilities?
Result: AM19002 Amendment to Section 401.3 and Rule RP19001 Approved by Governing Board 12/20/2019
Section 310 and 311
Issue: Digital product issues such as sourcing. This will include discussion of the Federal Bill (Digital Goods Fairness Act).
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