Electronic Sales And Use Tax Simplification System

Sales and Use Tax Simplification Task Force. As part of an effort to simplify the sales and use tax system, the department of revenue (department) created the electronic sales and use tax simplification system (SUTS), which is a one-stop portal designed to facilitate the collection and remittance of sales and use tax. As soon as possible, but no later than January 1, 2025, the bill requires the department to modify SUTS: to:

• Notify a local taxing jurisdiction when there has been a change in an account's attributes or when an account has been closed;
• To populate a local account number on all returns and summary reports, if the retailer filing the return has a number and provides the number in SUTS;
• Ensure that the missing license tool is working properly;
• Facilitate the automation of the filing process;
• Develop By developing a simplified spreadsheet filing system or a filing option that does not use a spreadsheet user interface for filing returns as an alternative to the current spreadsheet method ;
• To provide taxpayers with a bulk testing option for address files; and
• Create a simplified process for filing a zero return; and
• To include additional use taxes, additional information about deductions, filtering options, and certain tabs.

The bill permits the department to modify SUTS to:

• Require retailers to register with a local taxing jurisdiction in which taxes are due before using SUTS; and
• Prohibit a retailer from filing a return in SUTS unless the retailer has the correct local number on the account.

With the exception of charges for payments by credit cards, the bill prohibits the department from imposing a convenience fee or any other type of charge for a payment through SUTS and from passing those charges on to local taxing jurisdictions.

The bill also requires the department to:

• Create a campaign to promote SUTS for the purpose of increasing the awareness, participation, and compliance by retailers and local taxing jurisdictions; and
• Solicit and consider feedback from interested stakeholders about enhancements to SUTS that lead to greater local taxing jurisdiction participation and greater compliance by retailers.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)