Streamlined Sales Tax Advisory Council

March 3, 2004, Meeting Minutes

Mike Ralston, Co-chair, opened the meeting.

Kristi Magill, Co-chair, discussed the national activity. There isn’t much happening on the national front. It’s pretty much status quo.

Don Cooper updated the Advisory Council on the Department’s activity. States who are working on certification will have two meetings. They’ll be finalizing definition review this week. Sue Haffield from PricewaterhouseCoopers, who is reviewing Iowa’s certification, has indicated that there is nothing to prevent us from being certified as in compliance. State and private sector will get together the end of March in New Orleans. The business sector is to review states statuses. The next Working Group meeting will probably be the end of May.

RFP for software was to be ready the end of June. Now it’s delayed until January before a contract can be awarded. Mike discussed the RFP from last meeting. What’s included in RFP? Software? Implementation? We still don’t have information on the detail to be included in the RFP. The Department will try to obtain more information and e-mail the Advisory Council. What are the major components of the RFP? Rod Erickson thought the draft was technical in nature with software people mostly determining standards.

Registration – For the last 2 years, one private vendor expressed an interest. Now, MTC (Multistate Tax Commission) is going to propose they create the registration website and have it ready by 7/1/04. MTC costs will be spread out over SSTP states. The Advisory Council discussed an internet article on MTC and discussed concerns.

Administrative Rules – Darwin Clupper will update before the next meeting. Rules are on the department website. The new code sections will also be put on the department website.

Training – Internally we will have 5 Field Taxpayer Services Specialists (TSS) making presentations all around the state. Don Cooper and Dave Casey met with them a week ago to give basic information to Policy and TSSes. Don handed out a rough draft of the presentation. Wayne Cooper, who heads up the Department’s Taxpayer Services Section, was present. The Advisory Council needs to address what information to disseminate to the public.

Dave Casey briefed the Advisory Council on the actual Legislation. He provided two documents used to update our training staff.

Dick Koberg had e-mailed the Department regarding sourcing and a paper developed by the Public Interest Institute that dealt with origin based sourcing and how it impacts revenue stream. It was discussed, but it was decided not to pursue this concept.

National Update: Ohio passed legislation to delay implementation. Thus, we haven’t met the 10 states/20% of the population and no governing board can be established.

The Advisory Council had a lengthy discussion on the implementing date being delayed to January 1, 2005. If delayed, the Department would be able to use annual meetings as touch points for notifying the public. Those annual meetings mentioned were the Grocers Association in July and the Bar Association in June.

The Advisory Council discussed the Department’s ability to education the public before the implementation date.

Steve Roberts made a motion recommending delaying implementation to January 1, 2005 for an effective date. David Brasher seconded. The vote was a tie.

Kristi made the motion we revote on this issue at the next meeting, seconded by Ann Stocker.

The following “to do” list and timeline were discussed.

The next meeting is scheduled for Wednesday, March 31, at 10:00 in the Hoover State Office Building, Conference Rooms 429 and 430. Agenda item V. (review of Agreement) was deferred until next meeting.

Kristi adjourned the meeting.