The Division of Taxation recently filed documents with the Streamlined Sales Tax Governing Board in order to obtain annual recertification under the Streamlined Sales and Use Tax Agreement (SSUTA).
The Governing Board recertifies each member state of the SSUTA annually as of August 1. The Division of Taxation recently filed with the Governing Board a recertification letter, as well as a taxability matrix and a certification of compliance.
Rhode Island became a full member of the Agreement on January 1, 2007. The purpose of the agreement is to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance. The agreement focuses on improving sales and use tax administration systems.
Some out-of-state retailers have no physical presence in Rhode Island and are therefore not required to collect and remit the state’s sales and use tax. But because Rhode Island is a member of the SSUTA, some out-of-state retailers with no physical presence in Rhode Island voluntarily agree to collect and remit the tax anyway, generating in excess of $2 million in annual revenue that Rhode Island might not otherwise receive.