| Iowa Streamlined Sales Tax Advisory Council
Meeting Minutes June 29, 2006 Hoover State Office Building
I. Welcome & Opening Comments
Mark Schuling opened the meeting at 10:05 a.m.,
welcomed everyone and stated the meeting would be an informational
meeting and that the Council would need to address new legislation
this fall with a follow up report to the legislature by January.
Kristi Magill indicated she was just back from a nine-week
long period of work related travel and was looking forward
to information to bring her currant.
II. Update on Governing Board Meeting in Indianapolis
Kristi updated the Council on the meeting in Indianapolis
. Meetings held were SST Governing Board meeting, plus BAC
and other workgroups. She indicated there were two noteworthy
items for the Iowa SST Advisory Council. The first item was
the contract drafted for CSPs. At our last meeting, the Council
had concerns regarding the definition of voluntary seller
in Section D of the draft. That issue was resolved and that
was accomplished by using the definition used for unemployment
compensation guidelines.
The second item was CSP financial assistance. SLAC was assigned
a project to determine impact on state businesses. Diane Hardt
asked for clarification from that meeting. No specific directives
have gone out to the States for a study, but it will probably
be an agenda item for Bismarck .
Don indicated several amendments (OH & UT)
on sourcing were given in Indianapolis , but all were defeated.
A lot of administrative type issues were handled in Indianapolis
such as amendments to bylaws or rules, expanded the definition
of states specifically for Puerto Rico , and set budget
for states for the next fiscal year.
III. Update on SLAC & BAC Meetings in Des
Moines
The Des Moines meeting dealt more with technical issues.
Project teams were working on: bundling, digital goods, categorizing
durable medical equipment and mobility enhancing equipment.
Prepared foods was on the table, but was addressed through
the Compliance Review and Interpretations Committee. Larry
Paxton will provide Kristi with the final paper concerning
prepared foods when available.
Warren Townsend updated the Council on the
BAC meeting. Between the Des Moines meeting and June 28
th there was a push to finalize papers for discussion at
the upcoming meeting in Bismarck, North Dakota. Warren
wished more Council members had been in attendance.
The Southeastern Association of Tax Administrators (SEATA)
meeting is scheduled for July 17-18-19 in Memphis , Tennessee
.
July 19-20 Various Workgroups and SST SLAC meetings will
also be held in Memphis .
The schedule for Bismarck , North Dakota , is:
8/28 a.m. BAC
8/28 p.m. Implementing States & Executive
Committee
8/29-31 SST Governing Board
8/30 & 31 SLAC
Warren indicated BAC is looking at States who are not on
board. He discussed amnesty and two federal SSTP bills. These
bills differ on small business dollar thresholds, one supported
by Amazon and the other supported by eBay.
IV. Update on Legislation & Rules
Dave Casey provided a handout with legislative information
and discussed it with the Council. Diane will provide a copy
when she e-mails the minutes.
The department has updated a number of its rules, including
the excise tax change pertaining to hotel/motel and construction
equipment.
As part of the 2006 Legislative Session, a legislative request
was made to the Director of Revenue and the Council for recommendations
to be made by 1/1/07 for the following:
• Determine the number of sellers
impacted by the SST Agreement.
• What additional administrative
burden exists for these sellers?
• Recommendations to address
the additional burden.
Kristi and Mark agreed the information in the Cost of Collection
study might be useful in this determination.
All amendments from the Phoenix meeting are incorporated
into this year's legislation. States have two legislative
sessions to get amendments through. A letter indicating we
are in compliance and our legislation is updated will need
to be provided to the Governing Board. The Vermont petition
for membership will be up for approval at the August Governing
Board meeting.
Dave Casey reminded the Council that the department will
have an annual SST bill every year to stay in compliance with
amendments to the Agreement.
Kristi indicated the letter to the Governing
Board expressing the Council's position on CSP issues did
not get sent before the meeting Indianapolis. Some of the
issues were addressed at the meeting so the information
in the letter is outdated. Kristi asked the Council for
permission to change the letter to recognize the Governing
Boards efforts and to reinforce the need to move down that
path and that meaningful progress is being made. There were
no objections to Kristi's changes to the letter. Warren
also offered that smaller business have been impacted by
SST. Dick Koberg agreed with Warren. A final draft with
revisions will be circulated. She will have the letter to
the Governing Board for the Bismarck meeting.
V. Update on Registration and Revenue Tracking
Larry Paxton reported 669 streamlined registrations have
been received. Of those 669, 147 signed up as Model 1's using
CSPs and 68 as Model 2's using certified automated software.
The majority of these companies have not been filing with
the department.
Rod provided the registration update and noted that a change
was made to provide indicator SST allowance to the seller.
SST Collections Report has true SST Retailers and Retailers
(in 2002) who came forward but are not registered. It truly
reflects what additional revenue collected from SST project.
We're not counting retailers already remitting with the department.
Larry reported the collection of $1,144,000 so far since last
October.
The Council discussed registration panels and links. Larry
has been contacting Iowa based retailers regarding registration
just to clarify they are registering correctly. The Council
expressed that as a marketing concept, people need to understand
SSTP before they register. Larry will discuss providing information
on what model 1 and model 2's mean at the Executive Committee
meetings.
Amnesty does not start until model 1 and model 2 contracts
have been signed. The amnesty clock has started ticking on
model 4s effective 10/1/05 .
VI. Next Governing Board Meeting in Bismarck
Warren already informed the Council of the schedule for Bismarck
. If anyone interested in the Bismarck meeting information,
please contact Diane.Stoecker@iowa.gov or
taxexchange.org.
VII. Changes to Delegates in Governing Board
Rod Erickson and Don Cooper are both retiring
within the next two weeks. Mark thanked them for all the
work they've done on the project. Lucy Hardy from the Attorney's
General retired on June 15, 2006. She has served the Revenue
department for a number of years and the Council. Steve
Roberts moved that a resolution from the Advisory Council
recognizing their services to this Council and State of
Iowa be made. Kristi Magill and Dick Koberg seconded and
there were no objections from the Council.
There are four delegates to the Governing Board: two from
the legislative branch which are House Speaker Christopher
Rants and Senator William Dotzler and two from the Department
of Revenue which are the Director (Don Cooper was serving
for the Director) and Dave Casey. Mark Schuling will replace
Don and the remaining delegates will stay the same.
VIII. Set Next Meeting
Mark suggested mid-September. The minutes will be sent as
soon as possible and provide proposed meeting dates at the
same time.
Don discussed the Governing Board headquarters being housed
in Iowa and that the Department made an offer to house rent
free.
Casey indicated that the Executive Committee of the Governing
Board will basically continue with the same leadership under
Senator Cook. Don has resigned from the Finance Committee
and a new member will replace him in Bismarck .
Dick Koberg wondered it we know how many potential businesses
would register. The department does not know. Kristi suggested
that the industries might gather that information. Don indicated
no set goals to have a certain number of businesses by a certain
time have been made. The Council discussed the projected revenue
loss from the University of Kentucky study, but it would be
difficult to rely on since there are too many assumptions
that might be made. Kristi might check it out with industry
groups at a future meeting.
IX. Adjournment
Mark and Kristi adjourned the meeting at 11:28 AM .
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