Tax News

CCH (cch.taxgroup.com) reports:

Tennessee has submitted a petition to the Streamlined Sales and Use Tax (SST) Governing Board that would continue its associate membership until July 1, 2009, when it would become a full member. Currently, Tennessee is an associate member. However, under the terms of the Agreement, Tennessee's current associate membership will expire on December 31, 2007, because it will not be in full compliance with the Agreement by that date. The state recently delayed its previously enacted conformity provisions. (TAXDAY, 2007/07/06, S.26) Under current law, most of the provisions will become effective July 1, 2008, but full conformity will not be in place until July 1, 2009.
Tennessee's petition seeks to take advantage of an amendment to the Agreement that the Board adopted at its most recent meeting. (TAXDAY, 2007/06/26, S.1) Under this amendment, a state may now petition for membership up to 18 months prior to the date it will be in full compliance. If the petition is approved, the state will be an associate member during the interim before full compliance. Therefore, if Tennessee's petition is approved, the state will continue as an associate member until July 1, 2009, when it will automatically become a full member, assuming it does not further delay its conforming changes. If it does enact a further delay, it will forfeit its associate membership and must wait a year before repetitioning for membership.
The petition is expected to be voted on during the Board's upcoming meeting September 19-20, 2007, in Kansas City, Kansas. The petition and its supporting documentation can be found at http://www.streamlinedsalestax.org.
Petition for Membership, Tennessee Department of Revenue, filed August 17, 2007.