Iowa Streamlined Sales Tax: An Introduction

The Streamlined Sales Tax Agreement, a multi-state agreement providing for simplification of the nation's varying sales tax laws, became effective October 1, 2005, marking the beginning of one of its key components, the amnesty program. The Agreement is the culmination of a multi-year, nationwide effort by 44 states, the District of Columbia, local governments and members of the business community to develop measures to design, test and implement a system that radically simplifies sales and use tax collection and administration by retailers and states. The Agreement takes effect just shy of three years from its initial approval date on November 12, 2002.

On July 1, 2005, at a meeting of the petitioning states, Iowa was unanimously voted a full membership in the Streamlined Sales and Use Tax Agreement after having met all of the requirements. Iowa joined 17 other states as either full or associate members of the Agreement. Accordingly, the Agreement became effective on October 1, 2005, which represents the first day of the calendar quarter that is at least 60 days after the requisite number of petitioning states became members of the Agreement.