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Streamlined Sales Tax: A Hot Topic
July 2003 - Monthly Column

Streamlined Sales Tax is quickly becoming the hottest issue of the summer for many small businesses in Kansas. But it is not just business owners that will be affected; consumers will also feel the heat from the new law.

The Streamlined Sales Tax law, officially known as House Bill 2005, was passed during the recent legislative session and was signed into law by Governor Kathleen Sebelius. The intent of the law was to lay the groundwork so that Kansas will be able to tax Internet and catalog sales. The sales tax system requires businesses to remit the amount of tax based on the location of where the goods were delivered, not where the goods were sold.

Businesses faced a problem because the bill was passed very late in the legislative session and took many people by surprise. In fact, the ink was still wet from Governor Sebelius' signature when the law took effect. This caused businesses to scramble to incorporate over 750 different sales tax jurisdictions into their systems with only six working days in which to do it.

What does this mean on a practical level for consumers? Well, it means that if you live in the county and order flowers from a shop located within the city, you previously paid the city sales tax. Now, however, you would pay your bill based on the county sales tax rate. The new system seems confusing and it is, but business owners and consumers can do a few things to get through this difficult time.

What can you do as a consumer? The short answer is to be patient. Until businesses have had an opportunity to adjust to the new system your orders may take a little longer to process and when you order your next bouquet of flowers, you may be asked to provide more than just your credit card or telephone numbers.

There is hope for businesses too. As a former small business owner and Certified Public Accountant, I am sensitive to such issues. Therefore, my office has created a sales tax calculator to assist small businesses deal with these changes. The calculator is located on my web page at http://www.kansasstatetreasurer.com and is available for businesses to download into their individual system(s). It is FREE and simple to use.

It is my hope that this information and the sales tax calculator located on my web page will help bridge the gap caused by this legislation and will give the Department of Revenue time to create a comprehensive program to help small businesses. Until then, business owners and consumers can log on and become informed. Help is just a click away.

Tax questions or concerns with the new system can be directed toward the Department of Revenue at (785) 296-3041.

Editor's note: If you have any questions or comments, please send an email to jenalea@treasurer.state.ks.us or call (785) 296-3342.

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