Streamlined Sales Tax Advisory Council

December 16, 2004, Meeting Minutes

Chris Theisen joined the Council via conference call.

I. Opening Comments

Kristi Magill opened the meeting.

II. Update from National Meeting in Chicago

SSTP Calendar. Kristi shared the SSTP calendar, which showed timelines through October 2005. The next National meeting will be held in Phoenix on January 5-7, 2005.

Registration Service. Representatives of Business are uncomfortable with the Multistate Tax Commission (MTC) handling the registration system. Even though MTC developed the registration system, Business is concerned about them operating it. The Council also felt that MTC should not operate the registration system. The Council feels this topic should be a part of the Council’s annual report to the Legislature.

The question was asked if any resources were available to study the registration system. Rod indicated that there was nothing in writing. Mike will check the MTC newsletter. He and Rod hope to find something to share.

Interim Executive Director. Scott Peterson from South Dakota is the Interim Executive Director for the Governing Board which should become operational October 1, 2005. The search for a permanent replacement will begin in July.

Operational Issues. $20,000 is due from each state that petitions as a conforming state for the operational budget. This fee will be due by July 1, 2005. States that didn’t previously request appropriations will have to go back and ask their Legislatures for the money. Iowa will use revenues generated by voluntary filers to cover these costs.

Business Taxpayer Advisory Council (BTAC). The issue is whether the Governing Board has the authority to determine the council members, control the agenda and if the meetings must be open to the public. The Iowa Council believes that Business should appoint its own members and that the meetings can be closed.

Certified Service Provider RFP. The RFP went out November 1. The RFP contains no mention of implementing costs which prompted vendors to call. January and February are big months for reviewing the proposals. RFP’s are due January 4, 2005.

Other Items Discussed.

Ohio wants a small business carve out for destination sourcing. The other states don’t want to change the Agreement now.

Six states in January (Iowa is one) will make formal application for admission. Representatives from Business have reviewed our certificate of compliance; now states will review to see if we’re in substantial conformance.

III. Rates and Boundary Database Update

Rate and boundaries database is up and running. No one has tried to download it yet. Rod noted that the search results aren’t always correct. It’s the data and not the program. The FIPS Code data from the U.S. Postal Service is incorrect. Any questions, contact Rod.

IV. Rules Changes

The first set (Chapters 211, 219 & 231) are out on the Web site and have been filed in Iowa Administrative Code Bulletin. Legislative Rules Review Committee met Tuesday, December 14. Dave doesn’t anticipate any problems.

The second set is still being looked at internally. This set includes the rules related to machinery and equipment. The Department is looking at filing these the end of January.

The third set is currently being worked on by Darwin. They’ll be ready for circulation internally after January 1. This set pertains to services and agriculture.

Kristi requested that the Council look at the rules pertaining to their areas of expertise.

V. Proposed Legislative Changes

Dave provided the Council with a summary and actual language of the proposed legislative changes. Stacey Johnson provided a re-write of one last issue. The Council reviewed, discussed and made some changes. Dave will circulate the final language via e-mail.

The Council also had some discussion regarding printers.

VI. Possible Contact for Cost of Collection Study Steering Committee.

The Steering Committee has a position open to represent small or medium-size businesses. It was suggested maybe someone from the group called National Small Business & Entrepreneurs would be interested. The Council felt it shouldn’t endorse this unknown group. Kristi will see what the Steering Committee is doing to fill the position.

VII. Set Next Meeting

The Council’s next meeting will be Thursday, February 3, 2005, at 10:00 a.m. at the Hoover State Office Building. We’ll try to have the legislative representatives attend.

A big “thanks” to Stacey and the Iowa Taxpayers Association for providing a delicious lunch.

The meeting was adjourned.